Investment Rating - Maintains a "Buy" rating with a target price of 430 HKD [1][4] Core Views - The 2025 WeChat Open Class PRO event highlighted the potential for further monetization within the WeChat ecosystem, particularly through the integration of mini-programs, WeChat Stores, and service accounts [1] - WeChat Stores have shown rapid growth, with GMV in 2024 reaching 1.92 times that of 2023, and order volume increasing by 2.25 times [1] - WeChat mini-games continue to grow rapidly, with monthly active users (MAU) reaching 500 million and daily active users (DAU) hitting 100 million, a 10% year-over-year increase [1] - Video accounts have seen significant growth, with live streaming sessions by quality content creators increasing by 100% and their income rising by 110% in 2024 [1] - WeChat's AI capabilities, including the newly launched WeChat Cloud AI Code Assistant, are expected to lower the development threshold for mini-programs and support global and intelligent transformation for enterprises [1] WeChat Store Growth - WeChat Stores have expanded comprehensively, helping merchants transition from single-channel to omnichannel operations, thereby enhancing the operability of WeChat e-commerce and broadening user reach [1] - The integration of WeChat Stores with mini-programs and public accounts has improved multi-scene marketing efficiency, with the "gift-giving" feature expected to drive new e-commerce growth by leveraging WeChat's social attributes [1] Mini-Games Performance - Mini-games have demonstrated strong performance, with over 900 games monetizing through IAA (In-App Advertising) and contributing over 1 million in revenue, with the overall market size expected to double in the next three years [1] - IAP (In-App Purchase) mini-games have benefited from improved infrastructure, with notable performance in MMO, SLG, and tower defense genres [1] - Cross-platform mini-games have shown significant growth in PC gaming duration, payment rates, and ARPU [1] Video Accounts and AI - Video accounts have become a new showcase space for mini-games, with short video views increasing by 170% [1] - The WeChat Cloud AI Code Assistant has been applied to hundreds of Tencent applications, facilitating efficient mini-program development [1] - Enterprise WeChat has introduced intelligent tools like smart tables, aiding in the digital transformation of manufacturing and supporting global expansion [1] Financial Projections - Revenue is projected to grow from 6,536.7 billion RMB in 2024E to 7,599.2 billion RMB in 2026E, with a CAGR of 7.3% from 2024E to 2026E [3] - Non-IFRS net profit is expected to increase from 2,255.8 billion RMB in 2024E to 2,761.6 billion RMB in 2026E, with a CAGR of 10.6% over the same period [3] - The stock is currently trading at 15x, 13x, and 12x Non-IFRS PE for 2024E, 2025E, and 2026E, respectively [1][3]

Investment Rating - Tencent Holdings (00700 HK) maintains an "Outperform" rating [1] Core Views - Tencent being added to the US Department of Defense's Chinese Military Companies (CMC) list does not impact its core business [1][3] - The CMC list is relatively mild compared to other sanctions lists and primarily affects US Department of Defense procurement matters [3][7] - Tencent's overseas revenue, mainly from gaming, accounts for 29% of its gaming revenue and 9% of total revenue in 2024 [3][7] - Tencent has increased its share buybacks, repurchasing HKD 1 5 billion on January 7 and 18 2025, signaling confidence in its business [4][15] Business Analysis Overseas Gaming - Tencent's overseas gaming revenue heavily relies on acquired subsidiaries such as Supercell (Finland), Riot Games (US), and Miniclip (Europe) [3][7] - Key acquisitions include Riot Games (100% ownership, acquired in 2008 2011 2015), Supercell (84 3% ownership, acquired in 2016), and Miniclip (largest shareholder since 2015) [8] Growth Potential - Tencent has significant growth potential in areas such as WeChat ecosystem monetization and AI integration [4][16] - E-commerce: Tencent has shown potential in e-commerce and local life services, with the "Gift Sending" feature gaining popularity in 2024 [16] - AI: Increased capital expenditure on AI, with products like "Yuanbao" and "ima" launched, and AI integration into WeChat enhancing advertising business growth [16] Financial Projections - Adjusted net profit for 2024 2026 is projected to be RMB 2198 billion, RMB 2482 billion, and RMB 2729 billion, respectively [16] - PE valuations for 2024 2026 are 16x, 14x, and 13x, indicating historically low valuations [16] Historical Context - Similar cases like Xiaomi and SMIC show that companies removed from the CMC list often experience stock price recovery [13] - Xiaomi was removed from the CCMC list within 4 months of filing a lawsuit, leading to a 9 04% stock price increase over four days [13]

证券时报•数据宝统计显示，1月8日有63家香港上市公司进行了股份回购，合计回购5642.41万股，回购 金额20.49亿港元。 注：本文系新闻报道，不构成投资建议，股市有风险，投资需谨慎。 港股回购 港股回购、公司回购、回购、股份回购、港股 腾讯控股回购数量405.00万股，回购金额15.03亿港元，回购最高价为379.200港元，最低价为366.000港 元，年内累计回购金额51.08亿港元；小米集团-W回购数量430.00万股，回购金额1.42亿港元，回购最 高价为33.650港元，最低价为32.600港元，年内累计回购金额1.42亿港元；安踏体育回购数量132.00万 股，回购金额9983.50万港元，回购最高价为77.150港元，最低价为74.800港元，年内累计回购金额4.98 亿港元。 以金额进行统计，1月8日回购金额最多的是腾讯控股，回购金额为15.03亿港元；其次是小米集团-W， 回购金额为1.42亿港元；回购金额居前的还有安踏体育、友邦保险等。回购数量上看，1月8日回购股数 最多的是美瑞健康国际，当日回购量为907.20万股；其次是石药集团、中国生物制药等，回购数量分别 为670.00万股、 ...

Investment Rating - Target price of 540 HKD, representing a 42% upside from the last closing price, with a Buy rating [4][6] Core Views - The US sanctions on Tencent are not expected to have a fundamental impact on its business, and the company has actively responded by initiating a review process [1][2] - Tencent's diversified business layout, particularly in gaming, advertising, and fintech, demonstrates strong adaptability and growth potential [3] - The company's free float ratio is approximately 61%, and US institutional holdings account for about 11% of its shares, providing opportunities for domestic investors if US capital divests [2] - Tencent's international business exposure is relatively low, with US-related revenue accounting for only about 5% of total revenue [3] Business Performance and Strategy Diversified Business Layout - Tencent's Q3 2024 revenue reached 167.2 billion RMB, with the following breakdown: Value-Added Services (49%), Advertising (18%), and Fintech & Enterprise Services (32%) [3] - The company's international business primarily involves investments in US-based gaming companies, with minimal long-term impact expected from the sanctions [3] Content Ecosystem and IP Strategy - Tencent's entertainment business has shown steady growth, with significant achievements in IP integration and cultural export through platforms like Tencent Video and Yuewen Group [3] - Tencent Video has over 60 million daily active users and 116 million paying members, with a focus on high-quality content and member structure optimization [16][17] - Short-form video content is a key growth area, with both horizontal and vertical formats being developed to enhance user engagement and commercial potential [19] AI and Global Expansion - Generative AI (AIGC) is a core driver of Tencent's future growth, with applications in content creation, recommendation algorithms, and business service optimization [12] - Tencent's global investments, including stakes in companies like Riot Games and Supercell, have strengthened its international competitiveness, with overseas gaming revenue accounting for 29% of total gaming revenue in Q3 2024 [13] - The company plans to further expand its global presence through partnerships and AI-driven localization strategies [14] Capital Management - Tencent repurchased 112 billion HKD worth of shares in 2024, exceeding its target of 100 billion HKD, and plans to continue optimizing capital efficiency and shareholder returns [11] Financial Projections - Tencent's revenue is projected to grow from 718.6 billion RMB in 2025 to 776.6 billion RMB in 2026, with EBITDA margins expected to remain stable at around 39% [29] - The company's net profit is forecasted to increase from 231.4 billion RMB in 2025 to 255.5 billion RMB in 2026, driven by strong performance across its core business segments [29]

Investment Rating - The report maintains a "Buy" rating for Tencent Holdings, with a current price of 379.60 HKD and a target value of 478.17 HKD per share [5][22]. Core Views - Tencent Video's strategy of enhancing collaboration with WeChat IP and focusing on quality content has led to significant improvements in its competitive position, with four out of the top five new series in 2024 being aired on Tencent Video [10][11]. - The synergy between WeChat IP and Tencent's content ecosystem is strengthening, with a focus on high-quality IP adaptations across various media formats, including series, animations, and games [10][13]. - The report forecasts revenue growth for Tencent, projecting revenues of 657.9 billion RMB and 713 billion RMB for 2024 and 2025, respectively, with adjusted net profits expected to reach 221.8 billion RMB and 244.4 billion RMB, reflecting growth rates of 45.0% and 10.2% [10][17]. Summary by Sections Financial Forecast - Revenue for 2022 was 554.6 billion RMB, with projections of 609 billion RMB for 2023, 657.9 billion RMB for 2024, 713 billion RMB for 2025, and 768.9 billion RMB for 2026, indicating a growth rate of 9.8% in 2023 and 8.0% in 2024 [3][10]. - Adjusted net profit is expected to grow from 115.3 billion RMB in 2023 to 221.8 billion RMB in 2024, representing a 45.0% increase [3][10]. - The report anticipates an EPS of 12.00 RMB for 2022, increasing to 24.04 RMB in 2024, with a P/E ratio projected to decrease from 25.5 in 2022 to 14.5 in 2024 [3][10]. Business Performance - Tencent Video has successfully launched several high-performing series in 2024, with a focus on female-oriented themes and high-quality productions, which have significantly boosted viewership [10][11]. - The report highlights Tencent's comprehensive ecosystem from IP creation to content distribution, which is expected to enhance profitability and market share in the coming years [10][17]. Valuation - The report employs a Sum-of-the-Parts (SOTP) valuation method, estimating the core business value at 4.03 trillion HKD, with a total company value of 4.4 trillion HKD, translating to a target price of 478.17 HKD per share [20][22].

Investment Rating - The report maintains a "Buy" rating for Tencent (700 HK) with a target price of HKD 500, implying a potential upside of +22% from the current price of HKD 409 4 [4][7] Core Views - The inclusion of Tencent in the US Department of Defense's 1260H list is seen as having limited fundamental impact on the company, as its core business is concentrated in China with low reliance on US technology and markets [7] - Short-term market sentiment may face pressure due to potential negative impacts on overseas cooperation and international business development, especially with rising geopolitical uncertainties [7] - Tencent is expected to actively address the situation, similar to its previous successful appeal against the WeChat ban in the US [7] - The company's leading position remains strong, with improving profitability, and the focus for 2025 will be on the progress of WeChat's e-commerce ecosystem as a new growth driver [7] Financial Analysis and Forecasts - Revenue is projected to grow from RMB 554 552 million in FY22 to RMB 758 304 million in FY26E, with a CAGR of 7 0% [3][8] - Adjusted net profit is expected to increase from RMB 115 649 million in FY22 to RMB 250 348 million in FY26E, with a CAGR of 17 0% [3][8] - The adjusted target P/E ratio is forecasted to decline from 20 1x in FY24E to 17 0x in FY26E [3][8] - Key profitability ratios such as gross margin, operating margin, and adjusted net margin are expected to improve steadily over the forecast period [8] Market Expectations and Scenarios - The report presents three scenarios for Tencent: - Base case target price: HKD 500 - Optimistic case target price: HKD 537 (20% probability) - Pessimistic case target price: HKD 320 (20% probability) [15][16] - The optimistic scenario assumes better-than-expected performance in gaming and advertising, while the pessimistic scenario assumes weaker gaming performance and video monetization [15][16] Industry Coverage - The report covers major internet companies in China and globally, including Alibaba, JD com, Pinduoduo, NetEase, Bilibili, Meituan, and Kuaishou, among others [18] - Most companies in the coverage universe have "Buy" ratings, reflecting the analyst's positive outlook on the internet sector [18]

Investment Rating - The report maintains a "Buy" rating for Tencent Holdings [5][3] - The target price is set at 496.8 HKD, representing a potential upside of 21.3% from the recent closing price of 409.4 HKD [5][3] Core Insights - Tencent was added to the U.S. Department of Defense's "Section 1260H List" on January 7, 2025, which targets companies with ties to the Chinese military [1][2] - Despite the listing, the report suggests that Tencent's core business will not be significantly impacted, and there is a strong possibility of being removed from the list in the future [2][3] - Tencent's business continues to progress well, with new product approvals and features being launched, indicating a positive outlook for shareholder returns in 2024 and 2025 [3] Summary by Sections Company Overview - Tencent was unexpectedly included in the "Section 1260H List," which is updated annually to identify companies linked to the Chinese military [9][10] - The inclusion has led to a significant drop in ADR prices, but Tencent has stated that this is a misunderstanding as they do not operate in the military sector [2][11] Financial Performance - Tencent's revenue is projected to grow from 660.4 billion RMB in 2024 to 802.1 billion RMB in 2025, with a gross margin improvement from 52.8% to 53.5% [15] - The net profit is expected to increase from 193.1 billion RMB in 2024 to 249.8 billion RMB in 2025, reflecting a strong growth trajectory [15] Shareholder Value - Tencent has completed a share buyback program amounting to 112 billion HKD, significantly reducing its total share count and enhancing shareholder value [12] - The company plans to evaluate further buyback opportunities based on market conditions after the completion of the current program [12]

证券时报•数据宝统计，腾讯控股在港交所公告显示，1月2日以每股413.800港元至424.600港元的价格回 购168.00万股，回购金额达7.01亿港元。 该股当日收盘价416.000港元，下跌0.24%，全天成交额86.64亿港元。 自2024年11月15日以来公司已连续32日进行回购，合计回购5424.00万股，累计回购金额221.47亿港元。 （数据宝） 腾讯控股回购明细 其间该股累计上涨3.12%。 ...

Company Repurchase Activities - Tencent Holdings repurchased 1 37 million shares with a total amount of HKD 574 million the highest repurchase price was HKD 421 4 and the lowest was HKD 416 the cumulative repurchase amount for the year reached HKD 112 003 billion [1][3] - AIA Group repurchased 1 1058 million shares with a total amount of HKD 62 4812 million the highest repurchase price was HKD 56 85 and the lowest was HKD 56 1 the cumulative repurchase amount for the year was HKD 32 324 billion [1] - Anta Sports repurchased 635 thousand shares with a total amount of HKD 49 7718 million the highest repurchase price was HKD 78 9 and the lowest was HKD 77 45 the cumulative repurchase amount for the year was HKD 1 276 billion [1] Market Overview - On December 31 55 Hong Kong listed companies conducted share repurchases totaling 31 1658 million shares with a combined amount of HKD 890 million [2] - Tencent Holdings had the highest repurchase amount on December 31 at HKD 574 million followed by AIA Group at HKD 62 4812 million and Anta Sports at HKD 49 7718 million [3] - In terms of the number of shares repurchased China Gas Holdings led with 3 9 million shares followed by Andre Juice with 2 7765 million shares and Anton Oilfield Services with 2 168 million shares [3]

Group 1 - On December 27, 57 Hong Kong-listed companies conducted share buybacks, totaling 30.92 million shares and an aggregate amount of HKD 1.093 billion [1][2] - Tencent Holdings repurchased 1.68 million shares for HKD 702 million, with a highest price of HKD 420.60 and a lowest price of HKD 415.60, bringing its total buyback amount for the year to HKD 110.726 billion [1][2] - Anta Sports repurchased 1.0452 million shares for HKD 83.3808 million, with a highest price of HKD 80.00 and a lowest price of HKD 79.35, totaling HKD 977 million in buybacks for the year [1] - AIA Group repurchased 1.0970 million shares for HKD 62.0331 million, with a highest price of HKD 57.00 and a lowest price of HKD 56.25, accumulating HKD 32.2 billion in buybacks for the year [1] Group 2 - The highest buyback amount on December 27 was from Tencent Holdings at HKD 702 million, followed by Anta Sports at HKD 83.3808 million, and AIA Group among others [1] - In terms of share quantity, the largest buyback was conducted by CSPC Pharmaceutical Group with 6.2 million shares, followed by Kanglong Chemical and COSCO Shipping Development with 2.9518 million and 1.9280 million shares respectively [1]