Core Viewpoint - The report from Credit Lyonnais indicates that Tencent Holdings (00700) exceeded expectations in its second-quarter performance, with revenue and adjusted operating profit growing by 15% and 19% year-on-year, surpassing forecasts by 4% and 8% respectively [1] Group 1: Financial Performance - Tencent's three core businesses—online gaming, advertising, and cloud services—each achieved approximately 20% revenue growth [1] - The adjusted net profit forecasts for 2025 and 2026 have been raised by 2% and 3% respectively [1] Group 2: Future Outlook - The upcoming launch of the mobile game "Valorant" within the month is viewed positively [1] - Continuous empowerment of various businesses through AI technology is expected to contribute to growth [1] Group 3: Target Price and Rating - The target price for Tencent has been increased from HKD 710 to HKD 740 [1] - The rating remains "highly confident to outperform the market" [1]

Core Viewpoint - Tencent Holdings (00700) reported better-than-expected Q2 performance, with revenue and adjusted operating profit increasing by 15% and 19% year-on-year, exceeding expectations by 4% and 8% respectively [1] Group 1: Financial Performance - Revenue and adjusted operating profit growth of 15% and 19% year-on-year [1] - Core businesses, including online games, advertising, and cloud services, achieved approximately 20% growth [1] Group 2: Future Outlook - Anticipation for the launch of the mobile game "Valorant" within the month [1] - Continuous empowerment of various businesses through AI technology [1] - Adjusted net profit forecasts for 2025 and 2026 increased by 2% and 3% respectively [1] - Target price raised from 710 HKD to 740 HKD, maintaining a "highly confident outperform" rating [1]

Core Viewpoint - Tencent Holdings has seen a significant increase in its stock price, reaching 600 HKD per share for the first time in nearly four years, reflecting positive market sentiment following its Q2 2025 earnings report [1][3]. Financial Performance - For Q2 2025, Tencent reported revenue of 184.5 billion CNY, a year-on-year increase of 15%, and operating profit (Non-IFRS) of 69.2 billion CNY, up 18% year-on-year [3]. - The gross margin for the quarter was 57%, which is an increase of 4 percentage points compared to the previous year [3]. AI Investment and Impact - The earnings report highlighted Tencent's ongoing investment in AI, with CEO Ma Huateng noting that the company is benefiting from AI applications in its gaming platforms like "Honor of Kings" and "Peacekeeper Elite" [3]. - Marketing services revenue reached 35.8 billion CNY, a 20% increase year-on-year, driven by improvements in AI-driven advertising platforms and enhancements in the WeChat transaction ecosystem [3]. - The growth in enterprise services revenue accelerated due to increased demand for AI-related services, including GPU leasing and API token usage [3]. Expenditure on AI - Tencent's general and administrative expenses rose to 31.9 billion CNY, a 16% increase year-on-year, primarily due to higher R&D spending and employee costs related to AI business development [5]. - Capital expenditures surged by 119% to 19.1 billion CNY, mainly for investments in IT infrastructure and data centers [5]. Gaming Performance - International gaming revenue for the quarter was 18.8 billion CNY, while domestic gaming revenue was 40.4 billion CNY, reflecting year-on-year growth of 35% and 17%, respectively [5]. - The new game "Delta Operation" achieved an average daily active user count of over 20 million in July, ranking among the top five in the industry for daily active users and top three in revenue [5]. Future Outlook on AI - During the earnings call, Tencent's management emphasized the goal of enhancing existing business efficiencies through AI in sectors such as advertising, gaming, and fintech, with plans to explore monetization models for AI over time [5]. - Regarding AI computing chips, management indicated that while the situation with chip imports needs monitoring, Tencent currently has sufficient chips for training and upgrading existing models, with various options available for inference [5].

8月14日早盘，港股三大指数集体高开，恒指高开0.6％，国企指数高开0.69％，恒生科技指数高开 0.69%。开盘后，A股同赛道规模最大的恒生科技指数ETF（513180）跟随指数上扬，持仓股中，华 虹、哔哩哔哩、中芯国际、海尔智家、腾讯控股等涨幅居前。 消息面上，腾讯控股8月13日披露的二季报显示，AI技术及应用正加速转化为业绩动能。当季腾讯 实现营收1845亿元，同比增长15%，经营利润692.5亿元，同比增长18%。在核心业务坚实增长的同时， 腾讯持续加码AI战略投入：当季研发投入同比增长17%至202.5亿元，资本开支同比增长119%至191.1亿 元。隔夜美股方面，腾讯控股绩后ADR大涨。 花旗集团点评称，腾讯控股2025年第二季度营收加速增长，有力证明了其在营销服务、游戏和商业 服务领域的人工智能投资卓有成效。得益于国内游戏、视频账号、微信搜索等高利润率收入流以及有节 制的支出，毛利率/营业利润率/净利润率继续以22%/18%/20%的同比速度更快增长。展望未来，随着越 来越多的常青游戏的强劲收入、即将推出的《无畏契约》手游、《三角洲部队》贡献的增加、升级的广 告平台以及企业对GPU基础设施需求的 ...

Key Points Summary Core Insights - The report highlights a positive performance in major market indices, with the Hang Seng Index closing at 25,613, up 2.58% for the day and 27.69% year-to-date [1] - The report indicates significant growth in the technology sector, particularly with the Hang Seng Technology Index rising 3.52% [1] - The report notes that Tencent's Q2 revenue increased by 15% year-on-year, exceeding expectations, with a net profit growth of 10% [4][9] Market Performance - The Hang Seng Index has shown a year-to-date increase of 27.69%, while the Hang Seng Technology Index has increased by 26.02% [1] - The A-share market also performed well, with the Shanghai Composite Index reaching a four-year high, closing at 3,683, up 0.48% [5] - The US stock market continued its upward trend, with the Nasdaq and S&P 500 indices reaching new highs [5] Currency and Commodity Trends - The Renminbi index increased by 0.78% over the past month, while the US Dollar Index decreased by 0.15% [2] - Brent crude oil prices fell by 4.74% over the past month, while gold prices increased by 0.52% [2] Company-Specific Developments - Tencent's revenue from value-added services grew by 16% to 914 billion RMB, and international market game revenue surged by 35% [9][10] - Baidu's AI investment acceleration plan has successfully assisted 20 companies in securing over 100 million RMB in financing [11] - Alibaba Health and Innovent Biologics have entered a strategic cooperation to enhance disease management and digital marketing [12] Economic Indicators - China's M2 money supply increased by 8.8% year-on-year in July, surpassing market expectations of 8.3% [14] - The report anticipates that the US Federal Reserve may likely reduce interest rates in September [5] IPO and Market Activity - The report provides insights into recent IPO performances, highlighting significant gains for newly listed companies [24] - The report notes the increasing participation of the Hong Kong Stock Connect program in the overall market activity [21]

Core Viewpoint - Tencent Holdings has shown significant growth in its Q2 2025 financial results, driven by AI investments and improvements in various business segments, leading to a notable increase in stock price and market capitalization [3][5]. Financial Performance - Tencent reported Q2 2025 revenue of 184.5 billion yuan, a year-on-year increase of 15% [5]. - Operating profit (Non-IFRS) for the quarter was 69.25 billion yuan, up 18% year-on-year [5]. - Gross margin for the quarter was 57%, reflecting a 4 percentage point increase compared to the previous year [5]. AI Integration - The financial report highlighted Tencent's ongoing investments in AI, with CEO Ma Huateng noting benefits from AI applications in games like "Honor of Kings" and "Peacekeeper Elite" [5]. - Marketing services revenue reached 35.76 billion yuan, a 20% increase year-on-year, largely due to AI-driven improvements in advertising platforms and the WeChat transaction ecosystem [5]. - The demand for AI-related services has accelerated growth in enterprise services, including GPU leasing and API token usage [5]. Expenditure and Investment - General and administrative expenses rose to 31.9 billion yuan, a 16% increase year-on-year, primarily due to higher R&D and employee costs associated with AI development [5]. - Capital expenditures surged by 119% to 19.1 billion yuan, focusing on IT infrastructure and data centers [5]. Gaming Revenue - Tencent's international gaming revenue was 18.8 billion yuan, while domestic gaming revenue reached 40.4 billion yuan, reflecting year-on-year growth of 35% and 17%, respectively [6]. - The new game "Delta Action" achieved an average daily active user count of over 20 million in July 2025, ranking among the top five in the industry [6]. Future Outlook - Tencent's management emphasized the goal of enhancing operational efficiency through AI across various sectors, including advertising, gaming, and fintech, with plans to explore monetization models for AI over time [7]. - The company is monitoring the situation regarding chip imports for AI operations, stating that it currently has sufficient chips for training and upgrading existing models [7].

8月14日盘中，腾讯控股（00700.HK）涨2.39%，股价600港元/股，这是腾讯股价近4年来首次站上600 港元/股。随后，腾讯股价涨幅有所收窄，截至发稿，腾讯股价594港元/股，涨1.37%，市值5.44万亿港 元。 游戏方面，该季度腾讯国际游戏收入188亿元，本土游戏收入404亿元，分别同比增长35%和17%。新游 戏《三角洲行动》今年7月平均日活跃账户数突破2000万，该游戏位于行业日活跃账户数前五、流水前 三。 此前一日，腾讯发布2025年第二季度财报。该季度腾讯营收1845.04亿元，同比增长15%，经营利润 （Non-IFRS）692.48亿元，同比增长18%。该季度毛利率57%，同比增长4个百分点。 在财报发布后的业绩交流会上，腾讯管理层谈到AI时表示，公司着眼让AI提高现有业务的效率，例如 广告、游戏、金融科技，随着时间推移，也会进一步探索AI变现模式。至于AI运算依托的芯片，管理 层表示，芯片进口的情况还需要观察，腾讯目前有足够的芯片来做训练并升级现有模型，推理方面则有 不同的芯片选择。在软件方面，公司也会进一步改进，以提高推理效率，从而减少对芯片能力的依赖。 这份财报多处提到AI。腾 ...

Group 1 - The Hang Seng Index opened at 25,766 points, reaching a new high for the current rally, but closed at 25,598 points, down 0.06% [1] - Tencent Holdings reported better-than-expected half-year results, which contributed to the market's positive sentiment [1] - Analysts expect resistance around 26,000 points in the short term, but the medium-term upward trend remains intact [1] Group 2 - The mainland's economic performance in the first half of the year was stable, and the easing of trade tensions between the US and other countries has positively impacted market sentiment [2] - The current earnings season is expected to inject momentum into the market, particularly for technology stocks [2] - Despite the Hang Seng Index reaching a new high, there are concerns about significant resistance above 26,000 points, and profit-taking pressures may increase [2]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HK$ 670 [1][7]. Core Insights - The company reported Q2 2025 revenue of 184.5 billion RMB, a year-on-year increase of 15% and a quarter-on-quarter increase of 2%. Operating profit reached 60.1 billion RMB, up 18% year-on-year, while Non-IFRS net profit attributable to shareholders was 63.1 billion RMB, reflecting a 10% increase year-on-year [8]. - The company’s capital expenditure in Q2 increased by 119% year-on-year to 19.1 billion RMB, although it decreased by 30% quarter-on-quarter due to the impact of the overseas H20 ban. The company anticipates accelerated capital expenditure in the second half of the year as H20 supply restrictions ease [9]. - The integration of AI capabilities is expected to significantly enhance the company's advertising and gaming businesses, with the potential for substantial growth in direct advertising revenue from WeChat's AI search capabilities [8][10]. Company Overview - The company operates primarily in the media industry, with a market capitalization of approximately 400.71 billion RMB and a current share price of 586.00 RMB [2]. - The company’s product mix includes 31.3% from fintech and enterprise services, 30.1% from online gaming, 18.8% from social networking, and 18.5% from online advertising [4]. Financial Performance - The company’s projected net profit for 2025 is 225.28 billion RMB, with a year-on-year growth of 16.08%. The earnings per share (EPS) is expected to be 24.6 RMB, corresponding to a price-to-earnings (P/E) ratio of 24 times [12][14]. - The gross profit margin for Q2 was approximately 57%, an increase of 4 percentage points year-on-year, driven by improved margins across all major business segments [10]. Market Position - The company’s gaming revenue saw a year-on-year increase of 16% to 91.4 billion RMB, with domestic gaming growth at 17% and overseas gaming growth at 35% [10]. - The advertising revenue grew by 20% year-on-year to 35.8 billion RMB, outperforming the industry average, attributed to AI-driven enhancements in advertising platforms [10]. Future Outlook - The company is expected to maintain a strong growth trajectory, with anticipated revenue reaching 735.5 billion RMB in 2025, reflecting a continued upward trend in both gaming and advertising sectors [17].

Investment Rating - The report maintains a "Buy" rating for Tencent Holdings, with a target price of 767 HKD based on a 25x PE for 2025 [3][52]. Core Insights - Tencent's revenue and profit exceeded expectations, driven by strong performance in advertising and a deepening strategy in evergreen games, alongside comprehensive improvements in AI capabilities [3][4]. - For Q2 FY25, Tencent achieved a revenue of 184.5 billion RMB, a year-on-year increase of 14.5%, and an adjusted net profit of 63.1 billion RMB, up 10% year-on-year [52][18]. Financial Summary - **Revenue Forecast**: Projected revenues for 2025, 2026, and 2027 are 733.8 billion RMB, 797.3 billion RMB, and 871.3 billion RMB respectively, reflecting growth rates of 11.1%, 8.7%, and 9.3% [6][52]. - **Adjusted Net Profit**: Expected adjusted net profits for the same years are 255.3 billion RMB, 282.5 billion RMB, and 314.3 billion RMB, with growth rates of 14.6%, 10.7%, and 11.3% respectively [6][52]. - **Profitability Metrics**: The adjusted net profit margin is projected to improve from 25.9% in 2023 to 36.1% in 2027 [6]. Segment Performance - **Value-Added Services**: Revenue from value-added services reached 91.4 billion RMB in Q2 FY25, a 15.9% increase year-on-year, with a gross margin of 60.4% [52][26]. - **Marketing Services**: Marketing services generated 35.8 billion RMB, up 19.7% year-on-year, benefiting from AI-driven improvements in advertising platforms [52][31]. - **Financial Technology and Enterprise Services**: Revenue from this segment grew by 10.1% year-on-year, reaching 55.5 billion RMB, supported by increased demand for consumer loan services and business payment activities [52][39]. Operational Data - **AI Integration**: The report highlights the significant role of AI in enhancing operational efficiency and driving revenue growth across various segments, particularly in gaming and advertising [3][41]. - **User Engagement**: The monthly active users (MAU) for WeChat and QQ showed slight fluctuations, with WeChat MAU increasing by 0.6% and QQ decreasing by 0.4% in Q2 FY25 [42][48]. Earnings Forecast and Investment Recommendations - The report suggests that Tencent's ongoing investment in AI will continue to enhance its platform value, leading to robust revenue and profit growth [52][50].