Shen Wan Hongyuan released a research report saying2022cryptogamesTo maintain the "buy" rating of Tencent Holdings (00700)2022cryptogamesConsidering that the good growth momentum of the company's high gross profit margin business leads to the improvement of the overall profit margin, the profit forecast is raised, and the adjusted net profit of the company in 24-26 years is expected to be 2261 / 251 billion yuan (the original forecast is 1801 pound 2096 / 230.1 billion yuan). The target market capitalization has been raised from 3.8184 trillion yuan to 4.0351 trillion yuan, with a target price of HK $471.
According to the report, Q1 domestic game revenue fell 2% year-on-year (better than the consensus expectation of 4% year-on-year decline), overseas game revenue increased 3% year-on-year (in line with expectations), and overall game revenue declined slightly. However, from the perspective of pipeline performance and delay, the Q1 pipeline end is stronger than expected, with the overseas pipeline end growing by 34% compared with the same period last year. According to spot data, Supercell's "Wild chaos" Q1 pipeline increased by nearly 260% year-on-year (but with a long delay period). Domestic "Arena of Valor" and "Game for Peace" became regular in March. The bank calculates that the growth rate of the Q1 pipeline end is in the single digits. Q2 is expected to grow from the same period last year: "DNF Mobile Games" 52022cryptogames.21 launch; follow-up "Need for Speed" and "Breaking Dawn of the Star" are noteworthy, and the bank expects growth to rise to 20 per cent in the second half of the year. The overall gross profit margin of value-added services rose to 57% from 54% in the same period last year, mainly driven by subscription revenue such as high gross margin Mini Game and music. The live broadcast business with low gross margin is still shrinking.