Investment Rating - The report maintains a "Buy" rating for Tencent Holdings [3][5] Core Views - The report anticipates acceleration in growth for advertising and enterprise services in Q1 2026, with expectations for new game releases like "Honor of Kings World" and "Little People World" to contribute to growth in 2026 [3][10] - The forecasted IFRS net profit for Tencent is projected to be 224.8 billion, 241.6 billion, and 281.9 billion RMB for the years 2025, 2026, and 2027 respectively, reflecting adjustments based on increased AI investments [3][10] - The target price is set at 579.51 HKD, indicating a potential upside from the current price [3][5] Financial Performance Summary - For 2023, Tencent's revenue is reported at 609.02 billion RMB, with a year-on-year growth of 9.82% [4] - The operating profit for 2023 is 155.37 billion RMB, showing a significant year-on-year increase of 51.11% [4] - The net profit attributable to shareholders for 2023 is 115.22 billion RMB, which represents a decline of 38.79% year-on-year [4] - The earnings per share (EPS) for 2023 is reported at 12.63 RMB [4] - The gross margin for 2023 stands at 48.13%, while the net margin is at 18.92% [4] Revenue Breakdown - The report indicates that the revenue from value-added services reached 899 billion RMB in Q4 2025, with a year-on-year growth of 14% [10] - Gaming revenue for Q4 2025 is reported at 593 billion RMB, reflecting a year-on-year increase of 21% [10] - Marketing services revenue for Q4 2025 is 411 billion RMB, with a year-on-year growth of 18% [10] - Financial technology and enterprise services revenue for Q4 2025 is 608 billion RMB, showing a year-on-year increase of 8% [10] Future Projections - The report projects that total revenue will reach 660.26 billion RMB in 2024, 751.77 billion RMB in 2025, and 853.18 billion RMB in 2026, with respective growth rates of 8.41%, 13.86%, and 13.49% [4] - The operating profit is expected to grow to 200.10 billion RMB in 2024 and 244.74 billion RMB in 2025, with growth rates of 28.78% and 22.31% respectively [4] - The net profit attributable to shareholders is forecasted to increase to 194.07 billion RMB in 2024 and 224.84 billion RMB in 2025, with growth rates of 68.44% and 15.85% respectively [4]

Investment Rating - The report maintains a "Buy" rating for Tencent Holdings [3][5]. Core Insights - The report highlights that the gaming sector remains robust, with advertising and cloud services expected to see upward growth [2][10]. - Anticipated contributions from major games such as "Honor of Kings World" and "Little People World" are expected to drive growth in 2026 [3][10]. - The forecasted IFRS net profit for Tencent is projected to be 224.8 billion, 241.6 billion, and 281.9 billion RMB for the years 2025, 2026, and 2027 respectively [3][10]. Financial Performance Summary - **Revenue Forecast**: Expected revenues for 2025, 2026, and 2027 are 751.8 billion, 853.2 billion, and 972.3 billion RMB, reflecting growth rates of 13.9%, 13.5%, and 14.0% respectively [4][14]. - **Net Profit**: The net profit attributable to shareholders is forecasted to be 224.8 billion RMB in 2025, 241.6 billion RMB in 2026, and 281.9 billion RMB in 2027, with year-on-year growth rates of 15.9%, 7.5%, and 16.7% respectively [4][14]. - **Earnings Per Share (EPS)**: Projected EPS for 2025, 2026, and 2027 are 24.64, 26.48, and 30.90 RMB [4][14]. - **Profit Margins**: Gross margin is expected to improve from 56.2% in 2025 to 57.3% in 2027, while net margin is projected to stabilize around 29% [4][14]. Business Segment Insights - **Gaming Revenue**: The gaming revenue for Q4 2025 reached 593 billion RMB, showing a year-on-year increase of 21%, driven by both domestic and international titles [10]. - **Marketing Services**: Marketing services revenue for Q4 2025 was 411 billion RMB, with an 18% year-on-year growth, expected to increase further in Q1 2026 due to enhanced collaborations with e-commerce platforms [10]. - **Financial Technology and Enterprise Services**: Revenue from this segment was 608 billion RMB in Q4 2025, with a year-on-year growth of 8%, and is expected to accelerate in 2026 [10].

Core Insights - The Amplify Video Game Leaders ETF (GAMR) underwent a significant rebalance in March, involving 22 constituent adjustments aimed at capturing a shifting global landscape and reinforcing core gaming fundamentals [1] Group 1: Changes in Holdings - The rebalance included a notable shift from U.S.-listed shares of NetEase, Inc. (NTES) to Hong Kong-listed shares (9999) at a 2.5% weight, indicating a preference for local listings for international companies [2] - Bilibili Inc (9626) was added to the portfolio at a 2.5% weight, enhancing exposure to digital entertainment platforms linked to gaming and streaming [2] Group 2: Weight Adjustments - Electronic Arts (EA) saw a weight increase of 2.16%, bringing its total to 5.0%, while Unity Software (U) increased by 1.32% to a 2.5% stake, reflecting renewed confidence in gaming industry architects [3] - AppLovin (APP) and Sea Ltd (SE) were both allocated 5.0%, emphasizing the importance of mobile and monetization platforms in the gaming model [4] Group 3: Trimming of Megacap Holdings - The rebalance involved trimming positions in top-performing holdings like Nvidia (NVDA) and Meta Platforms (META), both reduced to a capped weight of 10.0%, and Roblox (RBLX) trimmed to 2.5% [5] - The adjustments reflect a normalization phase after significant gains in AI-driven and platform-centric companies, with Nexon being removed from the index [6] Group 4: Industry Trends - The March rebalance indicates a strategic rotation within the gaming ETF landscape, reallocating gains from megacap tech leaders towards a more diversified mix of gaming publishers, development platforms, and mobile-first companies [7] - The shift towards local listings highlights the increasing significance of global market structures in index construction [7]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整 性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而 引致的任何損失承擔任何責任。 （股份代號：700（港幣櫃台）及 80700（人民幣櫃台）） 根據股份獎勵計劃 授出獎勵 根據上市規則第17.06A條，董事會宣佈，本公司於二零二六年三月二十五日， 根據股份獎勵計劃的條款向僱員參與者授予的獎勵涉及 19,134,608股獎勵股份（惟 須待獲授人接納後方可作實），佔本公告日期已發行股份總數約0.2097%。 授出獎勵之詳情 有關授予獲授人獎勵的詳情如下： 授出日期： 二零二六年三月二十五日 獲授人及於授予獎勵項下 獎勵股份的數目： 根據股份獎勵計劃已授予僱員參與者的獎勵涉及 19,134,608股獎勵股份。 上述授出毋須獲本公司的股東於股東大會上批准。 於本公告日期，就董事所深知，概無獲授人為 (i)本公司的董事、主要行政人員或主要股東，或任 何彼等之聯繫人（定義見上市規則）；(ii)獲授或將獲 授購股權及獎勵超逾上市規則項下1%個人限額的 – 1 – 參與者；或(iii)本公司的關連實 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整 性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而 引致的任何損失承擔任何責任。 （股份代號：700（港幣櫃台）及 80700（人民幣櫃台）） 根據購股權計劃 授出購股權 根據上市規則第17.06A條，董事會宣佈，本公司於二零二六年三月二十五日， 根據購股權計劃的條款向僱員參與者授予9,203,153份購股權，以認購股份（惟須待 獲授人接納後方可作實）。 授出購股權之詳情 有關授予獲授人購股權的詳情如下： 授出日期： 二零二六年三月二十五日 獲授人及獲授 購股權的數目： 根據購股權計劃已授予僱員參與者 9,203,153份 購股權，以認購股份。 上述授出毋須獲本公司的股東於股東大會上批准。 於本公告日期，就董事所深知，概無獲授人為 (i)本公司的董事、主要行政人員或主要股東，或任 何彼等之聯繫人（定義見上市規則）；(ii)獲授或將獲 授購股權及獎勵超逾上市規則項下1%個人限額的 參與者；或(iii)本公司的關連實體參與者或服務提 供者。上述授出不會導致截至並包括有關授出日期 – 1 ...

Investment Rating - The investment rating for Tencent Holdings is "Buy" (maintained) [1] Core Insights - The company's performance in Q4 2025 showed steady growth, with total revenue reaching 194.4 billion yuan, a year-on-year increase of 13%, slightly above Bloomberg consensus expectations of 194.1 billion yuan. Non-IFRS net profit was 64.7 billion yuan, up 17% year-on-year, although slightly below the expected 64.9 billion yuan [8][13] - The gaming sector performed well, with domestic game revenue of 38.2 billion yuan, up 15% year-on-year, and international game revenue of 21.1 billion yuan, up 32% year-on-year, driven by new contributions from titles like "Delta Force" and "PUBG Mobile" [18] - AI continues to empower advertising business, with ad revenue reaching 41.1 billion yuan, a 17% increase year-on-year, although slightly below the expected 41.6 billion yuan [22] - Financial technology and enterprise services showed steady growth, with revenue of 60.8 billion yuan, up 8% year-on-year, driven by improvements in wealth management and commercial payment services [23] Summary by Sections 1. Performance Overview - Q4 2025 total revenue was 194.4 billion yuan, a 13% increase year-on-year, and Non-IFRS net profit was 64.7 billion yuan, a 17% increase year-on-year [13] - Gross margin improved by 3 percentage points to 56%, driven by a higher proportion of high-margin businesses and improved cost efficiency in fintech and cloud services [13] 2. Gaming Performance - Domestic game revenue reached 38.2 billion yuan, up 15% year-on-year, while international game revenue was 21.1 billion yuan, up 32% year-on-year [18] 3. Social Network Revenue - Social network revenue was 30.6 billion yuan, a 3% increase year-on-year, supported by growth in video account live streaming and music subscription services [19] 4. AI Empowerment - AI continues to enhance advertising capabilities, contributing to a 17% year-on-year growth in ad revenue [22] 5. Financial Technology and Enterprise Services - Revenue from financial technology and enterprise services was 60.8 billion yuan, an 8% increase year-on-year, driven by growth in wealth management and cloud services [23] 6. User Engagement - WeChat's monthly active users reached 1.418 billion, a 2% year-on-year increase, while QQ's mobile MAU slightly declined to 508 million [26] 7. Profitability Metrics - Overall gross margin was 56%, with specific margins for value-added services at 60%, advertising at 60%, and fintech and enterprise services at 51% [31] 8. Investment Forecast - The forecast for Non-IFRS net profit for 2026-2027 has been adjusted to 291.8 billion yuan and 339.2 billion yuan, respectively, with an expected net profit of 371.2 billion yuan for 2028 [34]

Investment Rating - The report maintains a "Buy" rating for Tencent Holdings [1] Core Insights - The company achieved a total revenue of 194.4 billion yuan in Q4 2025, representing a year-on-year increase of 13%, slightly above Bloomberg's consensus estimate of 194.1 billion yuan [8][13] - Non-IFRS net profit for the same quarter was 64.7 billion yuan, up 17% year-on-year, though slightly below the expected 64.9 billion yuan [8][13] - The overall gross margin improved by 3 percentage points to 56%, driven by a higher proportion of high-margin businesses and improved cost efficiency in fintech and cloud services [8][13] Revenue and Profit Performance - Q4 2025 domestic game revenue reached 38.2 billion yuan, a 15% increase year-on-year, exceeding the expected 37.5 billion yuan [18] - International game revenue was 21.1 billion yuan, up 32% year-on-year, surpassing the expected 20 billion yuan, primarily driven by games from Supercell and PUBG Mobile [18] - Social network revenue for Q4 2025 was 30.6 billion yuan, a 3% increase year-on-year, supported by growth in video account live streaming and music subscription services [19] - Advertising revenue was 41.1 billion yuan, a 17% increase year-on-year, although slightly below the expected 41.6 billion yuan [22] - Financial technology and enterprise services revenue reached 60.8 billion yuan, an 8% increase year-on-year, slightly below the expected 61.2 billion yuan [23] User Engagement Metrics - WeChat's monthly active users (MAU) grew to 1.418 billion, a 2% year-on-year increase, while QQ's MAU slightly declined to 508 million, down 3% year-on-year [26] Margin and Cost Analysis - The overall gross margin for Q4 2025 was 56%, with the gross margin for value-added services at 60%, benefiting from growth in both domestic and international games [31] - Sales expenses for Q4 2025 were 13 billion yuan, a 7% increase year-on-year, primarily due to seasonal marketing expenditures related to gaming and esports [32] Earnings Forecast and Valuation - The report adjusts the forecast for Non-IFRS net profit for 2026 and 2027 to 291.8 billion yuan and 339.2 billion yuan, respectively, with an expected Non-IFRS net profit of 371.2 billion yuan for 2028 [34] - The corresponding price-to-earnings (P/E) ratios for 2026-2028 are projected to be 14, 12, and 11 times [34]

Investment Rating - The report maintains a "Buy" rating for Tencent Holdings and sets a target price of HKD 780 [1] Core Insights - The report emphasizes Tencent's strong capability to capture long-term growth opportunities in AI development, particularly in agent-based AI and monetization models [1] - Management highlighted that AI is evolving from communication and reasoning to more action-oriented applications, leveraging Tencent's strengths through WeChat and QQ as natural interfaces between humans and AI [1] - The upcoming launch of the Mix Yuan 3.0 model in mid-April is expected to be a significant advancement in the company's model iterations [1] Summary by Relevant Sections AI Development - Tencent's management views AI as an enabler rather than a disruptor, with a focus on enhancing user engagement within its ecosystem through WeChat [1][2] - The company anticipates monetization opportunities through payments, transactions, and advertising revenue as user participation increases [1] Cloud Business - Tencent's cloud revenue accelerated in Q4 last year, with an expected adjusted operating profit of RMB 5 billion by 2025, reflecting a profit margin of approximately 8% to 10% [2] - Management plans to gradually shift the business towards external cloud customers as chip supply improves, particularly in the second half of the year [2] Gaming Business - Tencent's gaming portfolio, primarily consisting of multiplayer PvP games, is considered less susceptible to replacement by AI compared to single-player games [2]

Investment Rating - The investment rating for Tencent Holdings is "Buy" (maintained) [1] Core Views - The report highlights strong revenue growth driven by new games, AI applications, and WeChat commercialization, maintaining a "Buy" rating [3][4] - Tencent's Q4 2025 revenue reached 194.4 billion yuan, a year-on-year increase of 13%, with net profit of 58.3 billion yuan, up 14% year-on-year [3] - The company plans to invest over 36 billion yuan in AI product development in 2026, significantly increasing its AI-related expenditures [4] Financial Summary - Revenue projections for Tencent are as follows: - 2024A: 660.3 billion yuan - 2025A: 751.8 billion yuan - 2026E: 838.6 billion yuan - 2027E: 919.0 billion yuan - 2028E: 996.6 billion yuan - Year-on-year growth rates for revenue are projected at 8.4% for 2024, 13.9% for 2025, and 11.5% for 2026 [6] - Net profit projections are: - 2024A: 194.1 billion yuan - 2025A: 224.8 billion yuan - 2026E: 243.6 billion yuan - 2027E: 264.0 billion yuan - 2028E: 298.6 billion yuan - The report indicates a decrease in profit estimates for 2026-2027 due to increased AI investments [3][6] Business Performance - The report notes that Tencent's value-added services revenue reached 89.9 billion yuan in Q4 2025, with domestic game revenue contributing 38.2 billion yuan, a 15% year-on-year increase [3] - The marketing services revenue was 41.1 billion yuan, up 17% year-on-year, driven by AI-enhanced advertising precision and WeChat's closed-loop marketing [3] - Tencent's cloud services revenue grew by 22% year-on-year, supported by rising enterprise AI demand and a strong PaaS product lineup [4]

Investment Rating - The investment rating for Tencent Holdings is "Buy" (maintained) [1][9] Core Views - The report highlights strong revenue growth driven by new games, AI applications, and WeChat commercialization, with Q4 2025 revenue reaching 194.4 billion yuan (up 13% year-on-year) and net profit of 58.3 billion yuan (up 14% year-on-year) [3][4] - The company is increasing its investment in AI, planning to allocate over 36 billion yuan in 2026 for new AI product development, which is expected to enhance long-term growth potential [4] - Tencent's gaming segment shows robust performance with significant user engagement in new titles, supporting continued high growth in the gaming sector [5] Financial Summary and Valuation Metrics - Revenue projections for Tencent are as follows: - 2024A: 660.3 billion yuan - 2025A: 751.8 billion yuan - 2026E: 838.6 billion yuan - 2027E: 919.0 billion yuan - 2028E: 996.6 billion yuan - Net profit projections are: - 2024A: 194.1 billion yuan - 2025A: 224.8 billion yuan - 2026E: 243.6 billion yuan - 2027E: 264.0 billion yuan - 2028E: 298.6 billion yuan - The report indicates a projected P/E ratio of 16.4 for 2026, decreasing to 13.4 by 2028, reflecting expected growth in earnings [6]