“Stock King” Tencent (00700) will release its list on Wednesday (May 13). Under the influence of the epidemic, it has an impact on its media advertising and payment businesses. In contrast, driven by the “in-house Economy ”, mobile game performance has been strong. However, securities firms have different views on Tencent in the first quarter, with Non-GAAP net profit dropping from nearly 5% to more than 32% per year.
Brokers estimated Tencent’s net Non-GAAP profit in the first quarter of this year was between 19.9 billion yuan and 27.67 billion yuan (RMB, the same below). Nomura reported that Tencent’s revenue in the first quarter was about 103.4 billion yuan, up 21% year-on-year, and Non-GAAP net profit rose 25% to 26.22 billion yuan.
Nomura pointed out that the epidemic has brought favorable factors to Tencent’s online games. In the first quarter, the overall online game revenue is expected to rise 19% and the mobile game revenue is expected to rise 38% annually, helping to offset the 10% annual decline in computer game revenue.
Also, Goldman Sachs evaluates that Tencent’s revenue from the mobile game will exceed 30 billion yuan in the first quarter, up 42% year on year, mainly thanks to contributions from ” Game for peace ” and ” King of Glory “. The bank predicted that Tencent’s Non-GAAP net profit in the first quarter was about 25.33 billion yuan, up 21% year-on-year.
Jeffrey reports that Tencent’s online advertising revenue is expected to be about 15.4 billion yuan in the first quarter, up 16% year-on-year, and media advertising revenue alone has the opportunity to drop 20% year-on-year. The bank forecasts that Tencent’s overall revenue will increase by 21% to 103.4 billion yuan per year in the first quarter, and Non-GAAP’s net profit will be about 25.6 billion yuan, or 22% year-on-year.
Credit Suisse’s report reminds investors to pay attention to Tencent’s overall business outlook, especially the advertising and payment business, as well as its profit outlook and the development of gaming business after the outbreak, except for its performance in the first quarter.