TENCENT Q4 financial report is about to be disclosed: Gross profit and net profit are expected to achieve double-digit high growth for two consecutive quarters

Source: CICC Online. On March 20th, TENCENT (HK,00700) is set to disclose its financial report for the fourth quarter and full year of 2023. Currently, institutions predict that TENCENT's revenue in the fourth quarter will increase by about 8% year-on-year, reaching 157 billion RMB, while Non-IFRS net profit is expected to increase by approximately 33-35%, reaching 40 billion RMB. In 2023, TENCENT has achieved revenue and profit growth for multiple consecutive quarters, with profit growth outpacing revenue growth driven by high-quality revenue, and gross profit growth remaining above 20%, surpassing revenue growth. Institutions unanimously predict that TENCENT is expected to achieve annual revenue exceeding 610 billion RMB, Non-IFRS net profit exceeding 150 billion RMB, with a gross profit margin of 47%, surpassing the historical high of 46% in 2020. Sealand Securities pointed out that TENCENT's core business is stable, with abundant game product reserves in 2024, continued commercialization potential of video advertising and e-commerce, giving TENCENT a total target market value of 3.54 trillion RMB, corresponding to a target price of 375 yuan/412 Hong Kong dollars, maintaining a "buy" rating. Looking at different business segments, TENCENT's core sectors such as financial technology and enterprise services, advertising, games, and WeChat's commercial ecosystem all maintain strong momentum, with new growth highlights. The financial technology and enterprise services sector show steady growth, solidifying its position as the top revenue pillar. According to Sealand Securities' estimates, the revenue from financial technology and enterprise services representing the real economy in the fourth quarter of 2023 may reach 54.2 billion RMB, a 15% year-on-year increase and a 4% increase from the previous quarter