Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company reported Q4 2025 results that met expectations, with revenue of 194.4 billion yuan, a year-on-year increase of 13%, and adjusted net profit of 64.7 billion yuan, up 17% year-on-year. The enterprise services segment was highlighted as the biggest operational bright spot [7] - The company plans to increase its investment in AI, with a significant focus on new product launches in the gaming sector and enhancements in advertising and enterprise services [10] - The target price based on the SOTP valuation method is set at 740 HKD, indicating a potential upside of 46% from the closing price on March 20 [10] Financial Data and Profit Forecast - Revenue projections for the company are as follows: - 2024: 660.3 billion yuan - 2025: 751.8 billion yuan - 2026E: 834.2 billion yuan - 2027E: 921.4 billion yuan - 2028E: 100.08 billion yuan - Year-on-year growth rates for revenue are projected at 8.4% for 2024, 13.9% for 2025, 11.0% for 2026, 10.5% for 2027, and 8.6% for 2028 [9] - Adjusted net profit forecasts are: - 2024: 222.7 billion yuan - 2025: 259.6 billion yuan - 2026E: 284.0 billion yuan - 2027E: 325.1 billion yuan - 2028E: 365.7 billion yuan - The projected growth rates for adjusted net profit are 41.2% for 2024, 16.6% for 2025, 9.4% for 2026, 14.5% for 2027, and 12.5% for 2028 [9] Revenue Breakdown - The revenue breakdown for 2026E includes: - Value-added services and advertising: 574.3 billion yuan - Financial technology: 181.4 billion yuan - Cloud services: 59.2 billion yuan - The total estimated market capitalization based on the SOTP valuation is approximately 59.3 billion yuan [12]

馬化騰 董事會會議召開日期 騰訊控股有限公司（「本公司」）董事會宣佈，本公司將於2026年5月13日（星期三） 舉行董事會會議，董事會將於會上通過議案，其中包括批准本公司及其附屬公司 截至2026年3月31日止三個月的第一季度未經審核業績及公告，以及考慮派發股息 （如有者）。 承董事會命 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）） 主席 2026年3月23日 非執行董事： Jacobus Petrus (Koos) Bekker 和 Charles St Leger Searle；及 獨立非執行董事： 李東生、Ian Charles Stone、楊紹信、柯楊和張秀蘭。 於本公告刊發日期，本公司董事為： 執行董事： 馬化騰； ...

Investment Rating - The report maintains a "Buy" rating for Tencent Holdings [1][10]. Core Insights - Tencent's Q4 2025 results met expectations with revenue of 194.4 billion RMB, a year-on-year increase of 13%, and adjusted net profit of 64.7 billion RMB, up 17% year-on-year [7][10]. - The company plans to increase its investment in AI, with a significant focus on new product launches in 2026 [10]. - The report highlights strong growth in enterprise services and advertising, with advertising revenue increasing by 17% year-on-year in Q4 2025 [10]. Financial Data and Profit Forecast - Revenue projections for Tencent are as follows: - 2024: 660.3 billion RMB - 2025: 751.8 billion RMB - 2026E: 834.2 billion RMB - 2027E: 921.4 billion RMB - 2028E: 1,000.8 billion RMB - Year-on-year growth rates for revenue are projected at 8.4% for 2024, 13.9% for 2025, and 11.0% for 2026 [9][13]. - Adjusted net profit forecasts are: - 2024: 222.7 billion RMB - 2025: 259.6 billion RMB - 2026E: 284.0 billion RMB - 2027E: 325.1 billion RMB - 2028E: 365.7 billion RMB - The report anticipates a decrease in the adjusted net profit for 2026 and 2027 due to increased AI investments [10][12]. Valuation - The target price for Tencent is set at 740 HKD, representing a potential upside of 46% from the closing price on March 20 [10][12]. - The SOTP (Sum of the Parts) valuation method estimates Tencent's total market value at approximately 59.3 billion RMB [12].

Investment Rating - The report maintains a "Strong Buy" investment rating for Tencent Holdings [6] Core Insights - The company's game business growth exceeded expectations, with a significant increase in AI application investments across various sectors [6] - Tencent's Q4 2025 revenue reached 194.4 billion CNY, a year-on-year increase of 13%, while the Non-IFRS net profit was 64.7 billion CNY, up 17% year-on-year [1][6] - The report forecasts revenue growth for 2026-2028, estimating revenues of 833.4 billion, 915 billion, and 994.9 billion CNY, with adjusted net profits of 279.3 billion, 308.5 billion, and 339.5 billion CNY respectively [6] Business Segment Summaries 1. Online Gaming Business - In Q4 2025, the domestic gaming revenue was 38.2 billion CNY, a 15% year-on-year increase, while overseas gaming revenue reached 21.1 billion CNY, a 32% increase [10][16] - The growth was driven by new game launches and strong performances from established titles like "Honor of Kings" and "PUBG MOBILE" [10][16] 2. Social Networking Business - The social networking segment generated 30.6 billion CNY in Q4 2025, a 3% year-on-year increase, primarily from music subscription services and video live streaming [19] - The number of paid music subscribers rose to 127 million, a 5.3% increase year-on-year, with a paid rate of 24.1% [19] 3. Marketing Services Business - The marketing services segment reported revenue of 41.1 billion CNY in Q4 2025, an 18% year-on-year increase, driven by AI-enhanced advertising capabilities [25] - The introduction of the AIM+ intelligent advertising product matrix has improved advertising efficiency and effectiveness [26] 4. Financial Technology and Enterprise Services - This segment achieved revenue of 60.8 billion CNY in Q4 2025, an 8% year-on-year increase, with significant contributions from financial services and cloud services [32] - Tencent Cloud has achieved scalable profitability, benefiting from rising AI demand and improvements in PaaS and SaaS offerings [32] 5. Profitability and AI Ecosystem Development - The company reported a gross profit of 108.3 billion CNY in Q4 2025, a 19% increase year-on-year, with a gross margin of 56% [38] - Tencent continues to invest heavily in AI, enhancing its capabilities across various applications, including gaming and advertising [39][40]

Investment Rating - The report maintains a "Buy" rating for Tencent Holdings [1] Core Insights - Tencent's overall performance remains robust, with a significant increase in AI investments planned for the year [3][11] - The company reported Q4 2025 revenue of 194.4 billion RMB, a year-over-year increase of 13%, and a quarter-over-quarter increase of 0.8% [7][12] - Operating profit for Q4 2025 was 60.3 billion RMB, up 17% year-over-year but down 5% quarter-over-quarter [7][12] - Net profit attributable to shareholders was 58.3 billion RMB, reflecting a 14% year-over-year increase but an 8% decrease quarter-over-quarter [7][12] Summary by Relevant Sections Overall Performance - The company achieved a gross margin of 56% in Q4 2025, up from 52% in the same period last year [19][22] - The increase in gross margin is attributed to strong performance in domestic gaming and AI-driven demand for high-margin revenue sources [22] Operational Data - WeChat's monthly active users (MAU) reached 1.418 billion, a 2% year-over-year increase [8][13] - The number of registered accounts for paid value-added services reached 267 million, also a 2% year-over-year increase [8][13] Revenue Breakdown - Value-added services revenue grew by 14% year-over-year to 89.9 billion RMB, accounting for 46% of total revenue [30] - Gaming revenue increased by 20% year-over-year to 59.3 billion RMB, with domestic market revenue at 38.2 billion RMB (up 15%) and international market revenue at 21.1 billion RMB (up 32%) [30][31] - Marketing services revenue rose by 17% year-over-year to 41.1 billion RMB, driven by AI-enhanced advertising capabilities [39][40] - Financial technology and enterprise services revenue grew by 8% year-over-year to 60.8 billion RMB, with cloud services revenue increasing by 22% [42][43] Profitability Forecast - The report projects revenue for 2026-2028 to be 837.9 billion RMB, 924.1 billion RMB, and 1,007 billion RMB respectively, with Non-IFRS net profit expected to be 283.5 billion RMB, 323.2 billion RMB, and 358 billion RMB [11][44] - The target market capitalization for Tencent's various businesses is set at 5.8 trillion RMB, corresponding to a target price of 720 HKD per share [11][44]

Investment Rating - The report maintains a "Buy" rating for Tencent Holdings, indicating a positive outlook for the company's stock performance relative to the benchmark index [6][12]. Core Insights - Tencent's overall performance in Q4 2025 showed steady growth, with revenue increasing by 13% year-on-year and gross profit rising by 19%. The Non-IFRS operating profit and net profit attributable to shareholders both grew by 17%, aligning with Bloomberg consensus expectations [1]. - The company is significantly increasing its investment in AI, with plans to double its input in AI products this year. This strategic focus is expected to enhance efficiency across various business scenarios, including advertising and gaming [2]. - The gaming segment saw robust growth, with value-added services revenue increasing by 14% to 899 billion RMB, driven by both domestic and overseas game performance [3]. - Marketing services revenue also experienced a strong growth of 17% to 411 billion RMB, aided by improvements in AI-driven advertising effectiveness [4]. - The financial technology and enterprise services segment reported an 8% year-on-year growth, with cloud services contributing significantly to this increase [5]. Financial Projections - The forecast for Tencent's revenue is projected to reach 834.91 billion RMB in 2026, 916.73 billion RMB in 2027, and 997.20 billion RMB in 2028, with corresponding Non-IFRS net profits of 284.47 billion RMB, 315.83 billion RMB, and 341.55 billion RMB respectively [6][12]. - The adjusted EPS is expected to grow from 28.46 RMB in 2025 to 37.44 RMB by 2028, reflecting a strong earnings growth trajectory [6][12].

Investment Rating - The investment rating for the company is "Outperform the Market" [4][9][33] Core Insights - The company has shown a revenue growth of 13% year-on-year, with adjusted profit increasing by 17% [1][11] - Significant investments in AI are being made, with a focus on enhancing model capabilities and expanding product development [2][12][13] - The gaming sector has experienced a robust growth of 21% year-on-year, with strong contributions from both domestic and international markets [3][20][24] - Marketing services revenue grew by 17% year-on-year, driven by improved advertising performance and AI-enhanced targeting capabilities [4][27] - Financial technology and enterprise services revenue increased by 8% and 22% respectively, supported by growth in cloud services and transaction volumes [8][28] Summary by Sections Financial Performance - In Q4 2025, the company reported a revenue of 194.4 billion yuan, with a 13% year-on-year increase, primarily driven by advertising and gaming [1][11] - The adjusted operating profit for Q4 2025 was 69.5 billion yuan, reflecting a 17% increase year-on-year [1][11] - The overall gross margin improved to 56%, up by 3 percentage points year-on-year [1][11] AI Investments - The company invested 7 billion yuan in its core AI products, with a total annual investment of 18 billion yuan planned for 2025 [2][12] - Expected doubling of investment in AI products for 2026, indicating a strong commitment to AI development [2][12] Gaming Sector - The network gaming revenue reached 59.3 billion yuan, marking a 21% increase year-on-year [3][20] - Domestic market revenue was 38.2 billion yuan, up 15%, while international market revenue grew by 32% to 21.1 billion yuan [20][24] Marketing Services - Marketing services revenue was 41.1 billion yuan, reflecting a 17% year-on-year growth, attributed to enhanced advertising performance [4][27] - The company plans to deepen collaborations with e-commerce platforms to boost advertising revenue in 2026 [4][27] Financial Technology and Enterprise Services - Financial technology and enterprise services revenue totaled 60.8 billion yuan, with an 8% increase year-on-year [8][28] - Enterprise services revenue grew by 22%, driven by cloud service expansion and increased transaction volumes [8][28]

Investment Rating - The report maintains a "Buy" rating for Tencent Holdings [7][48]. Core Insights - The report highlights solid revenue growth driven by AI investments, with Tencent expected to leverage its position as the largest social media platform to enhance its value through AI [3][48]. - For FY25 Q4, Tencent reported revenue of RMB 194.4 billion, a year-on-year increase of 12.7%, and an adjusted net profit of RMB 64.7 billion, up 17.0% year-on-year [48]. - The report projects Tencent's revenue for 2026-2028 to be RMB 830.2 billion, RMB 901.3 billion, and RMB 974.4 billion, respectively, with adjusted net profits of RMB 277.2 billion, RMB 303.4 billion, and RMB 333.4 billion [48]. Financial Summary - **Revenue Forecast (in million RMB)**: - 2024A: 660,257 - 2025A: 751,766 - 2026E: 830,224 - 2027E: 901,271 - 2028E: 974,440 - Year-on-year growth rates: 8.4%, 13.9%, 10.4%, 8.6%, 8.1% [5]. - **Adjusted Net Profit Forecast (in million RMB)**: - 2024A: 222,703 - 2025A: 259,626 - 2026E: 277,153 - 2027E: 303,380 - 2028E: 333,417 - Year-on-year growth rates: 41.2%, 16.6%, 6.8%, 9.5%, 9.9% [5]. - **Adjusted Net Profit Margin**: - 2024A: 33.7% - 2025A: 34.5% - 2026E: 33.4% - 2027E: 33.7% - 2028E: 34.2% [5]. Segment Performance - **Value-Added Services**: Revenue reached RMB 899 billion in FY25 Q4, a 13.8% increase year-on-year, with domestic and overseas game revenues growing by 15.1% and 31.9%, respectively [48]. - **Marketing Services**: Revenue of RMB 411 billion in FY25 Q4, up 17.5% year-on-year, driven by AI-enhanced advertising capabilities [48]. - **Financial Technology and Enterprise Services**: Revenue increased by 8.4% year-on-year, supported by growth in cloud services and WeChat store transactions [48]. Operational Data - The integration of AI into Tencent's social ecosystem is expected to drive healthy growth, with WeChat's monthly active users (MAU) showing a slight increase of 0.3% [41][42]. - The report notes a significant increase in R&D spending, which reached RMB 238 billion in FY25 Q4, reflecting a 20% year-on-year increase [19][48].

Investment Rating - The report maintains a "Buy" rating for Tencent Holdings [7][48]. Core Insights - The report highlights solid revenue growth driven by AI investments, with Tencent expected to achieve revenues of 830.2 billion, 901.3 billion, and 974.4 billion RMB for the years 2026 to 2028, respectively. Adjusted net profits are projected to be 277.2 billion, 303.4 billion, and 333.4 billion RMB for the same years [48]. - The fourth quarter of FY25 saw Tencent's revenue reach 194.4 billion RMB, a year-on-year increase of 12.7%, with adjusted net profit rising by 17.0% to 64.7 billion RMB [48]. - The report emphasizes the integration of AI into Tencent's advertising technology and social ecosystem, enhancing user engagement and driving revenue growth across various segments [3][41]. Financial Summary - **Revenue Forecasts (Million RMB)**: - 2024A: 660,257 - 2025A: 751,766 - 2026E: 830,224 - 2027E: 901,271 - 2028E: 974,440 - Revenue growth rates are projected at 8.4%, 13.9%, 10.4%, 8.6%, and 8.1% respectively [5]. - **Adjusted Net Profit Forecasts (Million RMB)**: - 2024A: 222,703 - 2025A: 259,626 - 2026E: 277,153 - 2027E: 303,380 - 2028E: 333,417 - Adjusted net profit growth rates are 41.2%, 16.6%, 6.8%, 9.5%, and 9.9% respectively [5]. - **Adjusted Net Profit Margin**: - 2024A: 33.7% - 2025A: 34.5% - 2026E: 33.4% - 2027E: 33.7% - 2028E: 34.2% [5]. Segment Performance - **Value-Added Services**: Revenue increased by 13.8% year-on-year to 899 billion RMB in Q4, with domestic and overseas game revenues growing by 15.1% and 31.9%, respectively [28][36]. - **Marketing Services**: Revenue rose by 17.5% year-on-year to 411 billion RMB, benefiting from AI-driven advertising capabilities [32]. - **Financial Technology and Enterprise Services**: Revenue grew by 8.4% year-on-year, driven by increased cloud service revenues and expanded transaction volumes in WeChat stores [39]. Operational Data - The report notes that WeChat's monthly active users (MAU) increased by 0.3% in Q4, while QQ's mobile MAU decreased by 1.7% [42]. - The number of paid users for value-added services increased by 0.8% quarter-on-quarter [46]. Earnings Forecast and Investment Advice - The report suggests that Tencent, as the largest social media traffic entry point, is well-positioned to leverage AI to reconstruct platform value. The estimated reasonable valuation for the stock is 621 HKD per share based on an 18x PE ratio for 2026 [48][49].

Investment Rating - The investment rating for the company is "Outperform the Market" [4][9][33] Core Insights - The company reported a revenue growth of 13% year-on-year, with adjusted profit increasing by 17% [1][11] - Significant investments in AI are being made, with a focus on enhancing model capabilities and expanding product development [2][12][13] - The gaming segment showed strong performance, with a 21% increase in revenue, driven by both domestic and international markets [3][20][24] - Marketing services revenue grew by 17%, supported by improved advertising performance and AI-driven targeting capabilities [4][27] - Financial technology and enterprise services saw an 8% revenue increase, with enterprise services growing by 22% [8][28] Summary by Relevant Sections Financial Performance - In Q4 2025, the company achieved a revenue of 194.4 billion RMB, with a 17% increase in adjusted operating profit to 69.5 billion RMB [1][11] - The overall gross margin improved to 56%, up by 3 percentage points year-on-year [1][11] AI Investments - The company invested 7 billion RMB in core AI products in Q4 2025, with a total annual investment of 18 billion RMB planned [2][12] - Future investments in AI products are expected to double in 2026, indicating a strong commitment to AI development [2][12] Gaming Revenue - The gaming business generated 59.3 billion RMB in revenue for Q4 2025, reflecting a 21% year-on-year growth [3][20] - Domestic market revenue reached 38.2 billion RMB, while international market revenue was 21.1 billion RMB, showing growth rates of 15% and 32% respectively [20][24] Marketing Services - Marketing services revenue reached 41.1 billion RMB, with growth attributed to enhanced advertising performance and AI capabilities [4][27] - The company plans to deepen collaborations with e-commerce platforms to boost advertising revenue in 2026 [4][27] Financial Technology and Enterprise Services - Financial technology and enterprise services revenue grew to 60.8 billion RMB, with enterprise services specifically increasing by 22% [8][28] - The company is expanding its cloud services, which are expected to benefit from increased AI demand and international expansion [8][28]