Investment Rating - The report maintains a "Recommended" rating for Tencent Holdings (00700.HK) [1][3]. Core Views - The 2024 Tencent Global Digital Ecosystem Conference showcased Tencent's latest achievements in the industrial internet sector, emphasizing its cloud services and AI capabilities to support business growth across various industries [1]. - Tencent Cloud has upgraded its product systems focusing on intelligence, innovation, and internationalization, aiming to assist enterprises in achieving growth through AI implementation and overseas expansion [1]. - The report forecasts Tencent's revenue and profit growth, projecting revenues of 665.5 billion, 725.7 billion, and 784 billion yuan for 2024, 2025, and 2026 respectively, with year-over-year growth rates of 9%, 9%, and 8% [1]. Summary by Sections Conference Highlights - The conference theme was "Intelligent New Opportunities, Cloud-Driven Growth," highlighting Tencent's advancements in cloud products and AI models [1]. - Key product releases included the MoE model "Tencent Mix Yuan Turbo," which doubles inference efficiency and reduces costs by 50% [1]. - Tencent Cloud's new AI infrastructure brand "Tencent Cloud Intelligence" integrates high-performance computing, networking, and storage solutions [1]. International Strategy - Tencent Cloud's international strategy has led to over 10,000 overseas clients and more than 11,000 global partners [1]. - The report notes a growth rate exceeding 70% in the outbound business for various industries, with significant growth in the Asia-Pacific and Middle East regions [1]. Product Innovation - Tencent Cloud has developed a comprehensive product system to enhance operational efficiency for enterprises, covering various sectors including finance, transportation, and healthcare [1]. - The report emphasizes the alignment of Tencent Cloud's product offerings with the urgent needs of businesses for digital transformation [1]. Financial Projections - The report projects Tencent's total revenue for 2024 to be 665.5 billion yuan, with a year-over-year growth of 9.3% [1]. - Non-IFRS net profit is expected to reach 178.0 billion yuan in 2024, reflecting a significant recovery from previous declines [1]. - The projected earnings per share (EPS) for 2024 is 19.03 yuan, with a target valuation of 473.63 to 526.25 HKD based on a 18-20x PE ratio [1][3].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 465.35 [2][9]. Core Insights - The company recently launched the new "Hunyuan Turbo" model, which has improved training efficiency by 108% and reduced inference costs by 50%, positioning it competitively against GPT-4o [3][4]. - The company's cloud business has shown double-digit revenue growth in Q2 2024, with key strengths in audio-video, live streaming, and gaming sectors [3]. - Long-term growth is anticipated from the demand for AIGC (AI-Generated Content) and internal cost reductions driven by AI technologies [3][4]. Summary by Sections Financial Projections - Revenue is projected to grow from RMB 609,015 million in 2023 to RMB 657,251 million in 2024, reflecting a 7.92% increase [7]. - Adjusted net profit is expected to rebound from RMB 115,216 million in 2023 to RMB 176,105 million in 2024, marking a 52.85% growth [7]. - The report forecasts an EPS increase from RMB 12.33 in 2023 to RMB 18.85 in 2024 [7]. Business Strategies - The company is focusing on three main strategies to drive digital transformation and global expansion: 1. **Efficiency through Data**: The Hunyuan model has been applied in over 700 business scenarios, saving the company over RMB 300 million [5][12]. 2. **Adaptation to Trends**: The company is developing software compatible with domestic chips, targeting sectors like finance and government, with a penetration rate of over 50% in major clients for Tencent Meeting [5][12]. 3. **Global Expansion**: The company has built a global cloud infrastructure serving over 100 countries, exemplified by the global release of the game "Mingchao" and digital infrastructure projects in Southeast Asia [5][12]. Cloud and AI Innovations - The Hunyuan Turbo model features a trillion-level MoE architecture, achieving a 100% improvement in inference efficiency and a 50% reduction in costs [4][13]. - The company has enhanced its cloud services with new AI applications, including a code assistant that has improved code generation rates by 5% and a smart meeting feature serving over 15 million users daily [13]. Valuation - The report employs a Sum-of-the-Parts (SOTP) valuation method, assigning a per-share value of HKD 164.11 for the gaming business, HKD 19.20 for social networking, and HKD 97.27 for online advertising [17]. - The overall target price of HKD 465.35 corresponds to a PE ratio of 18.6x for 2024 and 16.1x for 2025 [17].

Investment Rating - The report maintains a "Buy" rating for Tencent Holdings [2][3] Core Views - Tencent Cloud is expected to continue driving enterprise growth and has significant long-term monetization potential. Revenue forecasts for 2024-2026 are projected at 661.3 billion, 711.9 billion, and 764.9 billion yuan, representing year-on-year growth of 9%, 8%, and 7% respectively. Non-GAAP net profits are expected to be 221.4 billion, 244.0 billion, and 265.5 billion yuan, with growth rates of 40%, 10%, and 9% respectively. A target price of 480 HKD is suggested based on various valuation multiples [2][3] Summary by Sections Company Overview - Tencent Cloud showcased its advancements in AI and cloud services during the Digital Ecosystem Conference held on September 5-6, 2024. The company has established partnerships with over 100 automotive manufacturers and mobility tech firms, and its AI solutions are utilized in over 1,300 healthcare institutions. Tencent Meeting has seen nearly 50% growth in overseas meetings since the beginning of the year [1] Strategic Initiatives - Tencent Cloud's "Three Clouds" strategy focuses on intelligentization, integrated innovation, and internationalization. The launch of the new AI model, Tencent Mix Yuan Turbo, has improved inference efficiency by 100% and reduced costs by 50%. The service fees for output and input are set at 0.05 yuan and 0.015 yuan per 1,000 tokens respectively [1] Financial Performance - Revenue for 2022 was 554.6 billion yuan, with a projected increase to 661.3 billion yuan in 2024, reflecting a growth rate of 9%. Non-GAAP net profit for 2022 was 115.6 billion yuan, expected to rise to 221.4 billion yuan in 2024, indicating a growth rate of 40% [5][8] Market Position - Tencent Cloud has surpassed 10,000 overseas clients, with its international business maintaining double-digit growth over the past three years. Revenue in the Asia-Pacific region grew over 50% year-on-year, while the Middle East region saw an 85% increase [1]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 422.68 [5][3]. Core Insights - The 2024 Tencent Global Digital Ecosystem Conference highlighted Tencent Cloud's strategic directions: intelligence, integrated innovation, and internationalization. The new model "Hunyuan Turbo" was introduced, showcasing significant improvements in efficiency and cost [2]. - Tencent Cloud has served over 10,000 overseas clients across more than 80 countries, providing digital solutions for various industries including gaming, fintech, and e-commerce [2]. - The company's financial forecasts indicate a recovery in net profit, with expected IFRS net profits of CNY 1,886 billion, CNY 2,184 billion, and CNY 2,454 billion for 2024, 2025, and 2026 respectively [3]. Financial Summary - Revenue for 2022 was CNY 554,552 million, with a projected increase to CNY 661,343 million in 2024, reflecting a growth rate of 8.59% [4]. - The operating profit is expected to rise from CNY 100,017 million in 2022 to CNY 206,689 million in 2024, indicating a growth rate of 35.28% [4]. - The net profit attributable to shareholders is forecasted to recover from CNY 115,216 million in 2023 to CNY 188,642 million in 2024, representing a growth of 63.73% [4].

Investment Rating - The report maintains a "Buy" rating for Tencent Holdings (0700.HK) with a target price of 430 HKD [3][11]. Core Insights - Tencent is leveraging three growth engines: intelligence, internationalization, and integrated innovation to enhance its position in the industrial internet sector [2]. - The company has introduced the Tencent Mix Yuan Turbo model, which significantly improves AI integration in various products, achieving a 40% reduction in coding time for internal programmers [2]. - Tencent Cloud has expanded its international business, serving over 10,000 overseas clients and achieving an 85% year-over-year revenue growth in the Middle East [2]. - The report highlights a robust growth trajectory for Tencent's enterprise services, with a 150% increase in partners generating over 1 million RMB in annual revenue over three years [2]. Financial Forecasts and Valuation - Revenue projections for Tencent are as follows: 2024E at 653.54 billion RMB, 2025E at 711.86 billion RMB, and 2026E at 757.43 billion RMB, reflecting growth rates of 7.3%, 8.9%, and 6.4% respectively [2][10]. - Non-IFRS net profit estimates are projected to be 225.58 billion RMB for 2024E, 254.39 billion RMB for 2025E, and 276.16 billion RMB for 2026E, with growth rates of 43.1%, 12.8%, and 8.6% respectively [2][10]. - The report adjusts the Non-IFRS net profit forecasts upward by 6.6%, 7.6%, and 8.1% for 2024, 2025, and 2026 respectively [2].

上 市 公 司 证 券 研 究 报 告 传媒 公 司 点 评 / 公 司 点 评 2024 年 09 月 09 日 腾讯控股 (00700) ——智能化、融合创新、国际化驱动腾讯云新增长 报告原因：有信息公布需要点评 买入（维持）事件： ⚫ 腾讯于 9 月 5 日-9 月 6 日在深圳举行 2024 腾讯全球数字生态大会，以"智启新机 云驱增 长"为主题；披露腾讯云业务进展以及未来规划。 投资要点： | --- | --- | |--------------------------|-------------------------------| | 市场数据： | 2024 年 09 月 05 日 | | 收盘价（港币） | 373.40 | | 恒生中国企业指数 | 6105.54 | | 52 周最高/最低（港币） | 401.00/260.20 | | H 股市值（亿港币） | 34,884.98 | | 流通 H 股（百万股） | 9,342.52 | | 汇率（人民币/港币） | 1.0979 | ⚫ 企业服务当前维持双位数收入增速，利润率改善，是腾讯中长期的重要业务看点。 ⚫ 腾讯云当前"三朵云 ...

Investment Rating - The report assigns a "Buy" rating to Tencent (700.HK) with a target price of HKD 460, indicating a potential upside of 23% from the current price of HKD 373.4 [3][11]. Core Insights - Tencent is positioned favorably in the digital ecosystem, leveraging digital technologies to drive long-term growth across its existing businesses, including advertising, gaming, and cloud services [2]. - The company has made significant advancements in AI technology, particularly with the launch of its new model, Tencent Mixuan Turbo, which boasts a 100% improvement in training and inference efficiency and a 50% reduction in deployment costs [2][3]. - Tencent Cloud has achieved substantial growth, with over 2 million customers and a doubling of revenue from SaaS partners, indicating a healthy and sustainable business model [2]. Summary by Sections Digital Ecosystem and Growth - Tencent's recent Global Digital Ecosystem Conference highlighted its commitment to using digital technology as a new growth engine for enterprises, addressing challenges such as global inflation and weak consumer sentiment [2]. - The company aims to assist businesses in exploring new markets and opportunities through digitalization [2]. AI Innovations - Tencent's focus on integrating AI into industry scenarios has led to the deployment of its Mixuan model across over 700 business scenarios, enhancing productivity in various sectors [2]. - The Mixuan Turbo model has achieved top rankings in domestic evaluations, showcasing its capabilities in understanding and generating language, images, and videos [2][3]. Cloud Computing Advancements - Tencent Cloud's new AI infrastructure, known as Tencent Cloud Intelligence, offers high-performance computing capabilities that significantly reduce the time required for training AI models [3]. - The infrastructure's reliability is demonstrated by its low failure rates and high data read/write efficiency, outperforming industry averages [3].

Investment Rating - The investment rating for Tencent Holdings is "Outperform the Market" (maintained) [2][4][13] Core Views - Tencent has launched its next-generation large model "Mix Yuan Turbo," which demonstrates strong competitiveness in the large model race, ranking first in the latest third-party evaluations in China and comparable to GPT-4o in Chinese scenarios. The model has improved reasoning efficiency by 100%, reduced costs by 50%, and increased decoding speed by 20% [4][5][6] - The launch of the AI Infra brand "Tencent Cloud Intelligence" provides a stable and efficient computing base for AI innovations, integrating computing, storage, and networking capabilities [8][9] - Tencent's AI application "Yuanbao" has officially launched, featuring a brand intelligent agent area with 11 initial partners, enhancing user experience across various scenarios [11][12] Summary by Sections Company Overview - Tencent's ecosystem has surpassed 11,000 industrial internet partners, serving over 2 million customers, with a 150% increase in partners generating million-level annual revenue over the past three years [4] - The international business has maintained double-digit growth over the past year [4] Financial Forecast - The adjusted net profit forecast for Tencent from 2024 to 2026 is estimated at 221.8 billion, 249.9 billion, and 275 billion respectively [4][15] - The expected revenue growth rates for 2024 to 2026 are 9%, 8%, and 6% respectively, with a net profit growth rate of 66%, 8%, and 7% [15] Product and Technology Development - The "Mix Yuan Turbo" model has been implemented in over 700 business scenarios within Tencent, enhancing AI capabilities across various products [4][5] - The "5T" foundational software products are compatible with major domestic chip manufacturers, providing comprehensive digital solutions for enterprises [9] Market Positioning - Tencent's cloud computing and platform software technologies are considered strong points, supported by a robust ecosystem and partnerships, positioning the company favorably in the AI era [4][13]

Investment Rating - The report maintains a "Buy" rating for Tencent Holdings with a target price of HKD 480.00, indicating a potential upside of 28.5% from the current price of HKD 373.40 [3][4]. Core Insights - Tencent's cloud services have shown significant growth, with over 2 million customers and a double-digit increase in the number of partners with over a million orders. SaaS partner revenue has grown over 100% [1][8]. - The newly launched Mix Yuan Turbo model has improved inference efficiency by 100% and reduced inference costs by 20%, with pricing for output/input dropping to RMB 0.05/RMB 0.015 per thousand tokens [1][13]. - Tencent Cloud's AI infrastructure has achieved a daily failure rate of 0.16 per thousand kilocalories, significantly better than the industry average of 0.48 [1][16]. - The company is focusing on three growth engines: intelligent engine, integrated innovation engine, and internationalization engine, leveraging its AI capabilities to enhance enterprise services [1][11][21]. Financial Summary - For FY24E, Tencent's sales revenue is projected to reach RMB 658,187 million, with an adjusted net profit of RMB 214,576.3 million, reflecting a CAGR of 11% for enterprise service revenue from FY24 to FY26 [2][28]. - The adjusted earnings per share (EPS) for FY24E is estimated at RMB 22.16, with a price-to-earnings (P/E) ratio of 19.5 [2][28]. - The company’s market capitalization is approximately HKD 3,482,795.2 million, with a 52-week stock price range of HKD 397.00 to HKD 262.20 [4][3].

[Table_Profit] | --- | --- | --- | --- | |--------------------------------------------------------------------|------------------------------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...