Flash | 22 May 2025 04:42:01 ET │ 11 pages Tencent Holdings (0700.HK) Highlights From Tencent Cloud AI Industry Application Summit: AI Agent CITI'S TAKE What's new – According to Tencent Cloud official account dated May 21 (link), Tencent provided a systematic strategic review of its large model development during 2025 Tencent Cloud AI Industry Application Summit, surrounding large model innovation, agent development and AI infrastructure upgrade. Tencent aims to construct a value-added AI-native ecosystem ...

23 May 2025 | 4:46PM HKT Tencent Holdings (0700.HK): TechNet China 2025 — Key Takeaways: AI-empowering ads and games; multiple AI applications; Buy We hosted Tencent's Investor Relations team at our GS TechNet China in Shanghai. Key investor focuses/topics discussed include: 1) Advertising has seen tangible benefits from AI-driven adtech upgrade and CTR improvement across different ad properties. Video Account alongside Moments are the top 2 largest revenue stream within Weixin advertising, with extended gr ...

Autonomous driving startup WeRide (WRD) is shifting into high gear with Tencent Cloud as its co-pilot. The two companies have expanded their strategic partnership to fast-track the commercial deployment of WeRide’s Level-4 robotaxi services and boost their reach across global markets.This move builds on a previous collaboration in April 2024. Now, the focus is broader—bringing self-driving technology to everyday users through Tencent’s platforms like WeChat and Tencent Maps. Users will be able to hail a WeR ...

GUANGZHOU, China, May 20, 2025 (GLOBE NEWSWIRE) -- WeRide (NASDAQ: WRD), a global leader in autonomous driving technology, has signed an expanded strategic cooperation agreement with Tencent Cloud to support WeRide’s autonomous driving R&D efforts, Robotaxi commercialization and expansion into international markets. (WeRide signs expanded strategic cooperation agreement with Tencent Cloud to support WeRide’s autonomous driving R&D efforts, Robotaxi commercialization, and global expansion) Under the new par ...

Group 1 - Many investors view Tencent Holdings through a geopolitical lens due to uncertain regulatory cycles and geopolitical tensions [1] - The presence of ongoing oversight from officials contributes to the cautious sentiment among investors regarding Chinese companies [1] Group 2 - The article highlights the challenges faced by Chinese companies, including Tencent, in the current investment climate [1]

Tencent Holdings (700 HK) | MARKET DATA | | | | | --- | --- | --- | --- | | Market cap (HKDm) | 4,787,479 | Free float | 67% | | Market cap (USDm) | 613,996 | BBG | 700 HK | | 3m ADTV (USDm) | 4,726 | RIC | 0700.HK | FINANCIALS AND RATIOS (CNY) Buy: Still our preferred stock in the sector Stronger growth prospects: Tencent's 1Q25 results beat on both the top and bottom line. Better revenue was led by a strong game and ad performance. Domestic games' (DG) outperformance was driven by evergreen games across v ...

Summary of Tencent Holdings 1Q25 Earnings Call Company Overview - **Company**: Tencent Holdings - **Industry**: Internet Services - **Date of Report**: 15 May 2025 Key Financial Highlights - **1Q25 Performance**: - Revenue increased by **13% YoY**, exceeding expectations - Adjusted Operating Profit (OP) and Net Profit (NP) grew by **18%** and **22% YoY**, respectively, both beating estimates by **4%** due to Gross Profit Margin (GPM) expansion [2][11] Core Business Segments 1. **Gaming**: - **Near Term**: 1Q25 saw robust growth exceeding **20%** from existing and new games, alleviating concerns about tougher comparisons in 2H25 - Notable performances from games like HoK and CrossFire, with CrossFire becoming the **3rd largest mobile game in China** - Projected revenue growth of **+14%** for domestic games and **+22%** for international games in 2025E [3] 2. **Advertising**: - **Near Term**: Advertising revenue grew by **20%** in 1Q25, driven by enhancements in ad technology and increased inventory - Anticipated to outpace industry growth of **17%** in 2025E [4] 3. **Mini Shops**: - **Near Term**: Strong GMV growth due to accelerating merchant onboarding - Long-term potential compared to Mini Programs' GMV of **Rmb8 trillion** in 2024, with Mini Shops projected at **cRmb200 billion** [5] 4. **AI Monetization**: - **Near Term**: Management optimistic about navigating GPU supply issues - Long-term plans include adding AI features to products like Weixin, leveraging a user base of **1.4 billion** with an average engagement of **1.5 hours daily** [6] Margin and Profitability Outlook - **1Q25 Margin**: Adjusted NP growth of **18%** against **13%** revenue growth - Management expects positive operating leverage and incremental AI revenue to support margins [11] Valuation and Price Target - **Price Target**: Increased to **HK$710.00** from **HK$700.00** - **Current Price**: **HK$521.00** as of 14 May 2025 - **Market Cap**: **HK$4,837 billion** (approximately **US$620 billion**) [7][13] Earnings Estimates - **2025E**: Revenue projected at **Rmb742.8 billion**, with adjusted NP expected to grow by **19%** [15] Investment Thesis - Tencent's results provide enhanced clarity regarding earnings amidst macro uncertainties - Management emphasizes a "long runway" for growth across various business lines, including gaming, advertising, e-commerce, and AI monetization - Despite premium valuation, Tencent offers high earnings visibility and growth potential [12] Risks - Key risks include competitive landscape changes, execution of new business strategies, integration of investments, rising operational costs, and regulatory challenges [19] Conclusion - Tencent Holdings demonstrates strong growth across its core segments, with a positive outlook for future earnings driven by strategic initiatives in gaming, advertising, and AI. The company maintains a "Buy" rating with a revised price target reflecting its growth potential and market position.

Group 1 - Astrada Advisors provides actionable recommendations aimed at enhancing portfolio performance and uncovering alpha opportunities, backed by a strong track record in investment research at leading global investment banks [1] - The company specializes in technology, media, internet, and consumer sectors across North America and Asia, excelling in identifying high-potential investments and navigating complex industries [1] - Astrada Advisors leverages extensive local and global experience to offer unique insights on market developments, regulatory changes, and emerging risks [1] Group 2 - The research conducted by Astrada Advisors integrates rigorous fundamental analysis with data-driven insights, providing a nuanced understanding of key trends, growth drivers, and competitive landscapes [1] - The focus of the company is to empower investors with timely research and a comprehensive view of industry dynamics, especially in volatile markets or when exploring new trends [1] - Astrada Advisors is committed to delivering superior insights to facilitate informed investment decisions [1]

Group 1 - Tencent reported a beat on its 1Q25 revenue while earnings were largely in line with expectations, indicating a consistent performance narrative [1] - The quarter's results reflect ongoing trends that have been observed in previous periods, suggesting stability in the company's operational performance [1] Group 2 - Astrada Advisors specializes in delivering actionable recommendations aimed at enhancing portfolio performance and uncovering alpha opportunities, backed by a strong track record in investment research [2] - The firm has expertise in technology, media, internet, and consumer sectors across North America and Asia, allowing it to identify high-potential investments and navigate complex industries effectively [2] - Astrada Advisors integrates rigorous fundamental analysis with data-driven insights to provide a nuanced understanding of key trends, growth drivers, and competitive landscapes [2]

If you are familiar with my previous articles, you probably know that I am rather bullish about a few Chinese technology companies – including the multinational technology conglomerate Tencent Holdings Limited ( OTCPK:TCEHY ). In my last article , whichMy analysis is focused on high-quality companies, that can outperform the market over the long-run due to a competitive advantage (economic moat) and high levels of defensibility. Focused on European and North American companies, but without constraints regar ...