Lyon: Tencent Holdings (00700.HK) is expected to resume double-digit growth in domestic game revenue in the second quarter, with commercial service revenue accelerating to over 20%.

Zhituo Finance APP has learned that Jefferies has released a research report stating that it expects Tencent Holdings (00700.HK) to achieve a 9.7% and 9.1% year-on-year growth in total revenue and adjusted EBIT for the second quarter, reaching RMB 202 billion and RMB 75.6 billion, respectively, with profit margins remaining relatively stable. Driven by new games such as "Delta Force," "Valorant Mobile," and "King of Luochuan: World," online gaming is expected to regain double-digit growth of 10% year-on-year, although growth in long-standing games is slowing. Online advertising revenue is expected to continue recording about 20% year-on-year growth, while revenue from business services is anticipated to accelerate to a 20% year-on-year growth driven by AI. The rating of "Highly Confident to Outperform the Market" is maintained, with a target price of HKD 740 unchanged.