Core Viewpoint - Daiwa maintains a "Buy" rating on Tencent Holdings (00700) with a target price of HKD 750, corresponding to a projected P/E ratio of 20.6 for 2026, citing potential downside risk from underperforming game results [1] Group 1: Game Business Insights - Daiwa attended Tencent's PUBG Mobile esports event and engaged with management regarding game business progress, indicating that Tencent is exporting best practices of "games as a service" globally [1] - The integration of Chinese and foreign elements is expected to enhance the appeal of domestic games, with optimism about Tencent's international game expansion and commercialization efforts [1] Group 2: AI and Cloud Capabilities - Tencent is recognized for its unparalleled AI and cloud capabilities, with AI playing a crucial role throughout the entire game lifecycle [1]

Core Viewpoint - Daiwa maintains a "Buy" rating on Tencent Holdings (00700) with a target price of HKD 750, corresponding to a forecasted P/E ratio of 20.6 times for 2026, citing potential downside risk from underperforming game results [1] Group 1: Game Business Insights - Daiwa attended Tencent's PUBG Mobile esports event and engaged with management regarding the progress of the gaming business [1] - The firm believes Tencent is exporting best practices of "games as a service" globally, enhancing the appeal of domestic games through a blend of Chinese and foreign elements [1] - There is optimism regarding Tencent's international gaming expansion and commercialization efforts [1] Group 2: AI and Cloud Capabilities - Tencent is recognized for its unparalleled AI and cloud capabilities, which play a crucial role throughout the entire gaming lifecycle [1]

Summary of Tencent Holdings Ltd. Conference Call Company Overview - **Company**: Tencent Holdings Ltd. (0700.HK) - **Industry**: China Internet and Other Services - **Market Cap**: US$734.57 billion - **Current Stock Price**: HK$616.00 (as of December 12, 2025) - **Price Target**: HK$735.00, representing a 19% upside potential Key Points from the Conference Call International Cloud Strategy - Tencent Cloud operates in 22 regions with 64 available zones and has a reserved bandwidth of 200T, along with over 3,200 acceleration nodes, positioning it as a leading cloud service provider in ASEAN [7] - Major customer acquisitions include GoTo in Indonesia and CP Group in Thailand, highlighting Tencent's competitive pricing and vertical experience in sectors like media and fintech [7] Gaming Sector Insights - Tencent's overseas games have started to show positive results this year, with a focus on the shooting games genre, which is projected to generate US$38 billion in 2025 [7] - The company has improved its market share in the gaming sector, achieving 60-70% during the battle royale era (2020) and 70-80% during the extraction era (2025) [7] - Success factors for Tencent's gaming studios include productivity differentials, category dynamics, and a focus on authenticity and creativity in game development [7] Financial Projections - Revenue projections for the fiscal years ending December 2024 to 2027 are as follows: - 2024: Rmb 660.3 billion - 2025: Rmb 753.4 billion - 2026: Rmb 836.7 billion - 2027: Rmb 918.3 billion [5] - Earnings per share (EPS) estimates are projected to grow from Rmb 20.63 in 2024 to Rmb 31.68 in 2027 [5] Risks and Opportunities - **Upside Risks**: - Successful execution of new game launches both domestically and internationally - Market share gains in social and short video ads - Increased adoption of consumer AI technologies [12] - **Downside Risks**: - Regulatory uncertainties in the gaming industry - Intensified competition in social networks and advertising budgets - Tightened regulations amid US-China tensions [12] Analyst Ratings - Tencent is rated as "Overweight" by Morgan Stanley, indicating a positive outlook compared to its industry peers [5] - The overall industry view is considered "Attractive," suggesting favorable conditions for growth in the China Internet and Other Services sector [5] Additional Insights - Tencent's cloud services are underappreciated by the market, indicating potential for growth that may not yet be fully recognized [1] - The company continues to prioritize internal chip usage for AI model training, reflecting a strategic focus on enhancing its technological capabilities [7] This summary encapsulates the key insights and financial metrics discussed during the conference call, providing a comprehensive overview of Tencent Holdings Ltd.'s current position and future outlook in the market.

Core Insights - U.S. equities have performed well in 2023, prompting investors to shift from underweight to neutral or overweight positions in foreign equities, particularly emerging markets [1][2] - The decline of the dollar and specific market events have contributed to the strong performance of foreign equities compared to U.S. investments [1] - Emerging markets are seen as having more growth potential due to being ahead in their rate cycles, making them attractive for investment [2] Emerging Markets Equities - Taiwan Semiconductor Manufacturing Co. (TSM) has returned 46.4% year-to-date (YTD) and is a significant holding in the Fidelity Emerging Markets Multifactor ETF (FDEM) [3] - Tencent Holdings (TCEHY) has achieved a YTD return of 48.1%, with a diverse portfolio that includes video games, social media, and e-commerce [4] - Alibaba Group (BABA) has returned 86.1% YTD, despite uncertainties surrounding Chinese stocks, benefiting from a shift away from U.S. equities [5] Fidelity Emerging Markets Multifactor ETF (FDEM) - FDEM has returned 25.4% YTD as of November 6, charging 27 basis points [6] - The ETF employs a multifactor approach, investing in stocks with attractive valuations, positive momentum, and high-quality profiles, while tilting towards sectors less correlated to U.S. stocks [6] - The ETF includes investments in firms like SK Hynix, indicating a strategy focused on outperforming companies in emerging markets [6]

Summary of Key Points Core Viewpoint - Tencent Holdings has been actively repurchasing its shares, with a total of 20 consecutive days of buybacks since November 18, amounting to 20.73 million shares and a total expenditure of 12.715 billion HKD, despite a 5.26% decline in share price during this period [1]. Group 1: Share Buyback Details - On December 15, Tencent repurchased 1.051 million shares at a price range of 602.500 to 608.000 HKD, totaling 63.579 million HKD [1]. - The stock closed at 603.000 HKD on the same day, reflecting a decrease of 2.11% with a total trading volume of 9.186 billion HKD [1]. - Year-to-date, Tencent has conducted 120 buybacks, acquiring a total of 14.3 million shares for a cumulative amount of 73.68 billion HKD [1]. Group 2: Historical Buyback Data - The buyback activity has shown a consistent pattern, with the highest buyback price recorded at 640.500 HKD on November 18, and the lowest at 494.400 HKD on July 4 [1][2][3][4]. - The buyback amounts have varied, with significant transactions such as 150.341 million HKD on January 15 for 396,000 shares [4]. - The data indicates a strategic approach by Tencent to stabilize its stock price amidst market fluctuations, as evidenced by the cumulative buyback amounts and share prices over the past months [1][2][3][4].

Group 1 - The company Tencent Holdings (00700) announced a share buyback plan, intending to repurchase 1.051 million shares at a cost of HKD 636 million [1]

Core Viewpoint - Tencent Holdings (00700) announced a share buyback plan, committing HKD 636 million to repurchase 1.051 million shares by December 15, 2025 [1] Group 1 - Tencent is set to spend HKD 636 million on the buyback [1] - The company plans to repurchase a total of 1.051 million shares [1] - The buyback is scheduled to be completed by December 15, 2025 [1]

Group 1 - Tencent Holdings (00700.HK) announced a share buyback plan, intending to repurchase 1.051 million shares at a total cost of HKD 636 million [1] - The buyback will occur on December 15, 2025, with a price range of HKD 602.5 to HKD 608 per share [1]

表格類別： 股票 狀態： 新提交 公司名稱： 騰訊控股有限公司 呈交日期： 2025年12月15日 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公司GEM證券 上市規則》(「《GEM上市規則》」)第17.27A條作出披露，必須填妥第一章節 。 | 第一章節 | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | 1. 股份分類 普通股 | | 股份類別 不適用 | | 於香港聯交所上市 | 是 | | | 證券代號 (如上市) 00700 | | 說明 | | | | | | 多櫃檯證券代號 80700 | RMB | 說明 | | | | | | A. 已發行股份或庫存股份變動 | | | | | | | | 事件 | | 已發行股份（不包括庫存股份）變動 | | 庫存股份變動 | 每股發行/出售價 (註4) | 已發行股份總數 | | | | 已發行股份（不包括庫存股份）數 目 | 佔有關事件前的現有已發 行股份（不 ...

Tencent Holdings (0700.HK) Conference Call Summary Industry and Company Overview - **Company**: Tencent Holdings - **Industry**: Cloud Computing and Gaming - **Event**: Business Sharing event held in Thailand on December 14, featuring key executives from Tencent Key Points and Arguments International Cloud Expansion 1. **Rapid Growth**: Tencent Cloud is expanding internationally, with a presence in 22 regions and 64 availability zones, supported by over 3,200 acceleration nodes and 200 terabits of reserved bandwidth [1][2] 2. **Local Demand**: Strong local demand in ASEAN markets (Singapore, Thailand, Indonesia) is driving this expansion, with significant projects like GoTo's food delivery in Indonesia and CP Group's IT migration in Thailand [1][2] 3. **Brand Recognition**: The localized infrastructure has enhanced Tencent Cloud's brand recognition and growth among key accounts and SMEs in the region [1] Competitive Advantages in Cloud Business 1. **Vertical Capabilities**: Tencent leverages its strengths in media and fintech to meet rising demand for high bandwidth, low latency media PaaS offerings [2] 2. **AI Infrastructure**: The company’s full-stack AI capabilities provide cost-effective infrastructure for overseas customers, optimizing efficiency in training and inference [2] 3. **Market Positioning**: Despite being a later entrant in Southeast Asia, Tencent differentiates itself from global hyperscalers through its offerings and competitive pricing [2] Gaming Market Opportunities 1. **China-to-International Market**: The gaming sector presents substantial opportunities, with Tencent focusing on enhancing its international strategy by exporting successful practices from China [3][10] 2. **Product Focus**: Emphasis on products over platforms, including app stores and user-generated content, is crucial for success in international markets [10] 3. **Shooting Game Genre**: The shooting game market is projected to reach a size of US$38 billion by 2025, with Tencent's strategic investments in this genre enhancing its market share [12] AI in Game Development 1. **Efficiency Gains**: AI is being utilized to improve efficiency in game development, particularly in 2D art and coding, with plans to reinvest these gains into higher-quality games [11] 2. **User Experience**: AI enhances user experience by reducing matching times and improving engagement through AI companions [11][20] Financial Performance and Projections 1. **Revenue Growth**: Total revenues are projected to grow from RMB 554.6 billion in 2022 to RMB 907.4 billion by 2027, with a compound annual growth rate (CAGR) of approximately 9% [21] 2. **Profit Margins**: Gross margins are expected to improve from 43.1% in 2022 to 56.9% by 2027, indicating strong operational efficiency [21] 3. **Earnings Per Share (EPS)**: Non-GAAP diluted EPS is projected to increase from RMB 23.67 in 2022 to RMB 35.13 by 2027 [25] Strategic Insights 1. **Investment Strategy**: Tencent is committed to investing in innovative developers and enhancing the authenticity of its games by combining Chinese and international influences [10][16] 2. **Market Dynamics**: Different user preferences by region are acknowledged, with mobile gaming dominating in emerging markets while PC gaming remains strong in North America and Europe [24] Conclusion - **Outlook**: Continued confidence in Tencent's growth trajectory, driven by AI applications across its business lines and a robust international strategy in cloud and gaming sectors [13] - **Investment Recommendation**: Maintain a "Buy" rating with a 12-month price target of HK$770, reflecting a potential upside of 25% from the current price [23][25]