Group 1 - The core viewpoint of the article is that Bank of America Securities maintains a "buy" rating for Tencent Holdings, with a target price of HKD 631, highlighting the potential of AI investments [1] - Tencent's management indicated that several AI products have entered the post-launch phase, but monetization will take several quarters to materialize [1] - The company is leveraging existing business operational leverage to fund AI investments, with short-term cost impacts primarily from depreciation [1] Group 2 - Tencent's commercial services department has four structural growth drivers: small store commissions, CRM services and enterprise WeChat software, security and real-time communication solutions, and GPU leasing [2] - The management remains optimistic about the long-term potential of enterprise services in China, with growth paths extending beyond infrastructure services to include software services [2] - Tencent is gradually enhancing monetization potential through increased traffic, improved ad click rates, and regular ad load increases [2]

Core Insights - The multi-modal large model market in China is projected to reach 15.63 billion yuan in 2024, an increase of 6.54 billion yuan from 2023, and is expected to grow to 23.48 billion yuan in 2025, indicating strong market demand and government support [1][6][19] Multi-Modal Large Model Industry Definition and Classification - Multi-modal large models are AI systems capable of processing and understanding various data forms, including text, images, audio, and video, using deep learning technologies like the Transformer architecture [2][4] Industry Development History - The multi-modal large model industry has evolved through several stages: task-oriented phase, visual-language pre-training phase, and the current multi-modal large model phase, focusing on enhancing cross-modal understanding and generation capabilities [4] Current Industry Status - The multi-modal large model industry has gained significant attention due to its data processing capabilities and diverse applications, with a market size projected to grow substantially in the coming years [6][19] Application Scenarios - The largest application share of multi-modal large models is in the digital human sector at 24%, followed by gaming and advertising at 13% each, and smart marketing and social media at 10% each [8] Industry Value Chain - The industry value chain consists of upstream components like AI chips and hardware, midstream multi-modal large models, and downstream applications across various sectors including education, gaming, and public services [10][12] Competitive Landscape - Major players in the multi-modal large model space include institutions and companies like the Chinese Academy of Sciences, Huawei, Baidu, Tencent, and Alibaba, with various models being developed to optimize training costs and enhance capabilities [16][17] Future Development Trends - The multi-modal large model industry is expected to become more intelligent and humanized, providing richer and more personalized user experiences, with applications expanding across various fields such as finance, education, and content creation [19]

Summary of Key Points Core Viewpoint - Tencent Holdings has been actively repurchasing its shares, indicating a strategy to support its stock price amid market fluctuations [2][3]. Share Buyback Details - On May 28, Tencent repurchased 985,000 shares at a price range of HKD 503.000 to HKD 515.000, totaling HKD 500 million [2]. - The stock closed at HKD 506.000 on the same day, reflecting a decline of 1.17%, with a total trading volume of HKD 8.524 billion [2]. - Since May 19, the company has conducted buybacks for eight consecutive days, acquiring a total of 7.796 million shares for a cumulative amount of HKD 4.003 billion, during which the stock price decreased by 0.39% [2]. Year-to-Date Buyback Activity - Year-to-date, Tencent has executed 32 buybacks, acquiring a total of 59.21 million shares for a total expenditure of HKD 25.029 billion [3]. - The buyback details include various dates, share quantities, and price ranges, showcasing a consistent effort to stabilize the stock price [3][4].

Group 1 - The performance of Hong Kong tech stocks is mixed, with Kuaishou (01024.HK) rising over 6% in the afternoon session [1] - NetEase (09999.HK) saw an increase of nearly 3% [1] - Alibaba (09988.HK) and Tencent Holdings (00700.HK) both experienced declines of over 1% [1]

Group 1 - Southbound funds had a significant net purchase of 11.975 billion yuan today [1] - In the Hong Kong Stock Connect (Shanghai), the top net purchases were in the Yingfu Fund and Meituan-W, with net purchases of 3.654 billion HKD and 1.318 billion HKD respectively [1] - Tencent Holdings had the highest net sell amount, totaling 537 million HKD [1] Group 2 - In the Hong Kong Stock Connect (Shenzhen), the Yingfu Fund and Hang Seng China Enterprises had net purchases of 1.604 billion HKD and 1.131 billion HKD respectively [1] - Tencent Holdings again had the highest net sell amount, amounting to 642 million HKD [1]

Group 1 - Hong Kong tech stocks strengthened in the afternoon session, with Meituan (03690.HK) rising nearly 2% [1] - NetEase (09999.HK) increased by over 1% [1] - Tencent Holdings (00700.HK) and Alibaba (09988.HK) also saw gains [1]

Core Viewpoint - Goldman Sachs economists predict that the RMB/USD exchange rate will reach 7.20, 7.10, and 7.00 in three, six, and twelve months respectively, indicating a potential appreciation of 3% over the next twelve months [1] Group 1: Companies Likely to Benefit from RMB Appreciation - The list of Hong Kong-listed companies that may benefit from RMB appreciation includes: GDS Holdings Limited (09698), Zijin Mining Group (02899), China Jinmao Holdings Group (00817), Dongyue Group (00189), China Southern Airlines (01055), Baidu Group (09888), China Feihe (06186), and Tencent Holdings (00700) [1] - Criteria for selection include: 1) Market capitalization over $2 billion and average daily trading volume (ADVT) exceeding $5 million 2) Industries reliant on USD imports, such as aviation, petrochemicals, construction, staple foods, and tourism, or having over 20% of debt in USD 3) Overseas revenue exposure below 30% 4) No foreign exchange gains during the RMB depreciation period in 2024 5) Low correlation of returns with exchange rate fluctuations [1] Group 2: Companies Likely to Underperform in RMB Appreciation - The list of Hong Kong-listed companies that may underperform during RMB appreciation includes: Haier Smart Home (06690), PetroChina Company Limited (00857), WuXi AppTec (03933), ASMPT Limited (00522), Yue Yuen Industrial Holdings (00551), Sinotruk (Hong Kong) Limited (03808), Shenzhou International Group Holdings Limited (02313), and Minth Group Limited (00425) [2] - Criteria for selection include: 1) Market capitalization over $2 billion and average daily trading volume exceeding $5 million 2) Overseas revenue exposure exceeding 30% 3) USD debt level below 5% 4) No foreign exchange losses during the RMB depreciation period in 2024 5) High correlation of returns with exchange rate fluctuations [2]

Group 1 - Tencent Holdings repurchased 979,000 shares for HKD 500.4 million on May 26 [1]

Core Viewpoint - Southbound funds recorded a net sell of approximately 1.5 billion HKD today, with Tencent Holdings and Alibaba-W experiencing significant net sell-offs [1] Group 1: Southbound Fund Activity - Southbound funds had a net sell of 15.07 million HKD today [1] - Tencent Holdings faced a net sell of 2.09 billion HKD [1] - Alibaba-W experienced a net sell of 1.73 billion HKD [1] Group 2: Other Company Activity - Meituan-W saw a net buy of approximately 2.08 billion HKD [1]

Group 1 - Hong Kong tech stocks declined again before noon, with Meituan (03690.HK) dropping over 5% [1] - Xiaomi Group (01810.HK) fell more than 3%, while Tencent Holdings (00700.HK) and JD.com (09618.HK) also experienced declines [1]