Core Viewpoint - Tencent Music Entertainment Group (TME) has significantly outperformed Spotify in 2025, with a total return of approximately 122% compared to Spotify's 54% year-to-date increase [1][2]. Company Performance - TME is the largest music streaming service in China, boasting over 550 million monthly active users and nearly 125 million paying users, indicating its dominant market position [3]. - TME's Q2 earnings report showed a revenue growth acceleration of 18%, marking its seventh consecutive quarter of growth, following a nearly 2% revenue decline a year prior [6]. - The company's gross margin improved to 44.4%, an increase of 240 basis points year-over-year, and operating margin grew to 35.3%, up from 21.1% two years ago [7]. Investment Insights - Spotify's investment in TME, valued at around $1.6 billion at the end of 2024, suggests strong confidence in TME's business model and growth potential [5]. - Analysts have set a 12-month price target for TME at approximately $24.50, indicating a slight downside, but the average target from recent updates suggests potential upside to around $28.25, representing a 13.5% increase [8][9]. Market Position - TME's forward price-to-earnings (P/E) ratio is around 27x, which is significantly lower than Spotify's P/E of over 59x, indicating a potential undervaluation of TME [9]. - Despite TME's lack of geographic diversification, it has substantial growth potential within China, where only about 9% of the population are paying users [11][12].

Group 1 - The last article published in mid-May 2025 rated Tencent Holdings Limited (TCEHY) as a "Buy" based on its competitive advantage and high levels of defensibility [1] - The analysis focuses on high-quality companies that can outperform the market over the long run, without constraints regarding market capitalization [1] Group 2 - The analyst has a beneficial long position in the shares of BABA and TCEHY, indicating confidence in these stocks [2]

Core Viewpoint - The company reported strong Q2 2025 financial results, with revenue and profit exceeding expectations, indicating robust operational performance [1] Revenue Performance - The company achieved revenue of 184.5 billion yuan in Q2 2025, a year-over-year increase of 15%, surpassing Bloomberg consensus by 4% [1] - Adjusted operating profit reached 69.2 billion yuan, up 18% year-over-year, also exceeding expectations by 4% [1] - Adjusted net profit attributable to shareholders was 63.1 billion yuan, reflecting a 10% year-over-year increase, surpassing expectations by 2% [1] Gaming Sector - The gaming segment generated revenue of 59.2 billion yuan in Q2 2025, a 22% year-over-year increase, exceeding Bloomberg consensus by 5% [1] - Domestic game revenue was 40.4 billion yuan, up 17% year-over-year, surpassing expectations by 1% [1] - The overseas gaming business reported revenue of 18.8 billion yuan, a 35% year-over-year increase, significantly exceeding expectations by 17% [1] Advertising Business - Advertising revenue reached 35.8 billion yuan, a 20% year-over-year increase, surpassing Bloomberg consensus by 2% [2] - The growth was driven by AI enhancements, the expanding WeChat e-commerce ecosystem, and increased demand from various media platforms [2] Financial Technology and Enterprise Services - Revenue from financial technology and enterprise services was 55.5 billion yuan, a 10% year-over-year increase, exceeding expectations by 3% [2] - The recovery in commercial payment and growth in cloud services contributed to this performance [2] Capital Expenditure - Capital expenditure (CAPEX) was 19.1 billion yuan, a 119% year-over-year increase, accounting for approximately 10% of revenue [3] - The CAPEX growth aligns with previous guidance, indicating a potential supply-side constraint [3] Profit Forecast and Investment Recommendations - Revenue forecasts for 2025-2027 have been adjusted to 744.1 billion, 814.9 billion, and 880.0 billion yuan, reflecting year-over-year growth of 13%, 10%, and 8% respectively [4] - Non-IFRS net profit estimates for the same period are adjusted to 258.9 billion, 298.4 billion, and 335.3 billion yuan, with year-over-year growth of 16%, 15%, and 12% respectively [4] - The target price is set between 613.18 and 766.48 HKD, maintaining a "recommended" rating [4]

Investment Rating - The report maintains a "Buy" rating for Tencent Holdings (00700.HK) with a target price range of HKD 613.18 to HKD 766.48 [1][5]. Core Insights - Tencent's Q2 2025 financial results exceeded expectations, with revenue of HKD 184.5 billion, a year-over-year increase of 15%, and adjusted operating profit of HKD 69.2 billion, up 18% year-over-year [1][9]. - The gaming sector is experiencing a strong recovery post-pandemic, with significant growth in both domestic and international markets [1][20]. - The advertising business also showed robust performance, with revenue reaching HKD 35.8 billion, a 20% year-over-year increase [1][30]. - Financial technology and enterprise services generated HKD 55.5 billion in revenue, reflecting a 10% year-over-year growth [1][32]. Summary by Sections 1. Q2 2025 Operating Performance - Revenue reached HKD 184.5 billion, exceeding Bloomberg consensus by 4%, with adjusted net profit of HKD 63.1 billion, also surpassing expectations by 2% [1][9]. 2. Business Segment Performance - **Gaming**: Revenue of HKD 59.2 billion, up 22% year-over-year, driven by strong performance in both domestic and international markets [1][20]. - **Advertising**: Revenue of HKD 35.8 billion, a 20% increase year-over-year, attributed to AI enhancements and the growing WeChat ecosystem [1][30]. - **Financial Technology and Enterprise Services**: Revenue of HKD 55.5 billion, reflecting a 10% year-over-year growth, with improvements in commercial payments and cloud services [1][32]. - **Social Networking**: Revenue of HKD 32.2 billion, a 6% year-over-year increase, showing some slowdown compared to other segments [1][17]. 3. Financial Projections - Revenue forecasts for 2025-2027 have been adjusted to HKD 744.1 billion, HKD 814.9 billion, and HKD 880.0 billion respectively, with corresponding net profits projected at HKD 223.4 billion, HKD 262.9 billion, and HKD 299.8 billion [1][6].

Market Overview - On August 29, the Hang Seng Index rose by 0.32%, with southbound trading totaling HKD 180.90 billion, comprising HKD 96.47 billion in buying and HKD 84.43 billion in selling, resulting in a net buying amount of HKD 12.04 billion [1] Southbound Trading Details - Southbound trading through the Stock Connect (Shenzhen) recorded a total transaction amount of HKD 69.63 billion, with buying at HKD 40.17 billion and selling at HKD 29.47 billion, leading to a net buying of HKD 10.70 billion [1] - Southbound trading through the Stock Connect (Shanghai) had a total transaction amount of HKD 111.27 billion, with buying at HKD 56.30 billion and selling at HKD 54.96 billion, resulting in a net buying of HKD 1.34 billion [1] Active Stocks - The most actively traded stock by southbound funds was SMIC, with a total transaction amount of HKD 78.59 billion [1] - Other notable stocks included Guotai Junan International and Alibaba-W, with transaction amounts of HKD 72.51 billion and HKD 67.41 billion, respectively [1] - Tencent Holdings had a net buying amount of HKD 15.84 billion, closing up by 0.42%, while Alibaba-W saw a net buying of HKD 11.49 billion [1][2] Continuous Net Buying - Three stocks experienced continuous net buying for more than three days, with Alibaba-W leading at six consecutive days, followed by Huahong Semiconductor at four days and Kangfang Biotech at three days [2] - The total net buying amounts during this period were HKD 59.75 billion for Alibaba-W, HKD 11.06 billion for Kangfang Biotech, and HKD 9.49 billion for Huahong Semiconductor [2]

Summary of Key Points Core Viewpoint - Tencent Holdings has been actively repurchasing its shares, indicating a strong commitment to enhancing shareholder value and confidence in its stock performance [2][3]. Share Buyback Details - On August 29, Tencent repurchased 919,000 shares at a price range of HKD 594.500 to HKD 605.000, totaling HKD 550 million [2]. - Since August 18, the company has conducted buybacks for 10 consecutive days, acquiring a total of 9.19 million shares for a cumulative amount of HKD 5.506 billion, with the stock price increasing by 0.76% during this period [2]. - Year-to-date, Tencent has executed 72 buybacks, totaling 98.075 million shares and an aggregate amount of HKD 45.549 billion [3]. Historical Buyback Data - The buyback details include various dates, share quantities, and price ranges, showcasing a consistent strategy to repurchase shares at varying prices [3][4][5]. - For instance, on August 28, Tencent bought back 927,000 shares at a maximum price of HKD 598.500, amounting to HKD 550.85 million [3]. - The buyback activity reflects a strategic approach to managing capital and responding to market conditions, with significant amounts allocated to repurchases over the past months [4][5].

格隆汇8月29日丨腾讯控股(00700.HK)公告，8月29日耗资5.5亿港元回购91.9万股。 ...

智通财经APP讯，腾讯控股(00700)发布公告，于2025年8月29日，该公司斥资5.5亿港元回购91.9万股。 ...

FF305 翌日披露報表 (股份發行人 ── 已發行股份或庫存股份變動、股份購回及/或在場内出售庫存股份) | | | B. 贖回/購回股份 (擬註銷但截至期終結存日期尚未註銷) (註5及6) | | | | | | --- | --- | --- | --- | --- | --- | --- | | 1). | 已購回作註銷但尚未註銷的股份 | | 931,000 | 0.01015 % | HKD | 591.2352 | | | 變動日期 | 2025年8月18日 | | | | | | 2). | 已購回作註銷但尚未註銷的股份 | | 932,000 | 0.01016 % | HKD | 590.5673 | | | 變動日期 | 2025年8月19日 | | | | | | 3). | 已購回作註銷但尚未註銷的股份 | | 934,000 | 0.01018 % | HKD | 589.7859 | | | 變動日期 | 2025年8月20日 | | | | | | 4). | 已購回作註銷但尚未註銷的股份 | | 928,000 | 0.01012 % | HKD | 593.584 | | ...

证券时报·数据宝统计，腾讯控股在港交所公告显示，8月28日以每股590.500港元至598.500港元的价格 回购92.70万股，回购金额达5.51亿港元。该股当日收盘价594.000港元，下跌0.83%，全天成交额128.98 亿港元。 自8月18日以来公司已连续9日进行回购，合计回购827.20万股，累计回购金额49.56亿港元。 其间该股 累计上涨0.34%。 今年以来该股累计进行71次回购，合计回购9715.60万股，累计回购金额449.99亿港元。（数据宝） 腾讯控股回购明细 | 日期 | 回购股数（万股） | 回购最高价（港元） | 回购最低价（港元） | 回购金额（万港元） | | --- | --- | --- | --- | --- | | 2025.08.28 | 92.70 | 598.500 | 590.500 | 55084.98 | | 2025.08.27 | 90.90 | 614.500 | 596.000 | 55028.60 | | 2025.08.26 | 89.90 | 617.500 | 609.500 | 55081.51 | | 2025.08.25 | 89. ...