Nomura: Tencent's first-quarter performance remains impressive, target price raised to HKD 670
Nomura released a research report stating that despite macroeconomic uncertainties, Tencent's performance in the first quarter remains impressive, with online gaming and advertising businesses exceeding expectations, driving revenue and non-IFRS earnings per share to grow by 13% and 25% year-on-year, respectively, surpassing market expectations by 2.5% and 3%. During the period, online gaming revenue grew by 24% year-on-year, exceeding market forecasts by 8 percentage points, with both local and international games achieving strong growth. The flagship games "Honor of Kings" and "Game for Peace" both set historical records for total revenue, which surprised Nomura. Nomura maintains a "Buy" rating on Tencent, raising the target price from HKD 468 to HKD 670, and adjusting the earnings per share forecasts for this year and next year from RMB 26.15 and RMB 28.87 to RMB 27.32 and RMB 30.59, respectively
According to the Zhitong Finance APP, Nomura released a research report stating that despite macroeconomic uncertainties, Tencent Holdings (00700) still delivered impressive performance in the first quarter. The online gaming and advertising businesses exceeded expectations, driving revenue and non-IFRS earnings per share to grow by 13% and 25% year-on-year, respectively, surpassing market expectations by 2.5% and 3%. During the period, online gaming revenue grew by 24% year-on-year, exceeding market forecasts by 8 percentage points, with both local and international games achieving strong growth. The flagship games "Honor of Kings" and "Game for Peace" both set historical records for total revenue, which surprised Nomura. Nomura maintains a "Buy" rating on Tencent, raising the target price from HKD 468 to HKD 670, and adjusting the earnings per share forecasts for this year and next from RMB 26.15 and RMB 28.87 to RMB 27.32 and RMB 30.59, respectively
