Core Viewpoint - Tencent's video segment is experiencing a significant decline in paid membership, which is impacting the overall performance of the company despite a strong revenue growth in other areas [2][3]. Group 1: Financial Performance - In Q2 2025, Tencent reported a revenue increase of 15% year-on-year, reaching 184.5 billion yuan, and a net profit increase of 17% to 55.6 billion yuan [2]. - The decline in Tencent Video's paid membership numbers, which fell by 3 million to 114 million, is a concerning trend for the company [2]. Group 2: Market Environment - The advertising revenue for Tencent Video is under pressure, with competitors like iQIYI and Mango TV also reporting declines in advertising income [2][3]. - iQIYI's advertising revenue dropped by 10.4% year-on-year to 1.33 billion yuan in Q1, while Mango TV's revenue decreased by 2.7% to 3.438 billion yuan in 2024 [2]. Group 3: Industry Trends - The rise of short video platforms is significantly affecting the long video market, with short video users in China reaching 1.04 billion and a usage rate of 93.8% [3]. - Short videos are seen as more efficient in monetization, leading brands to prefer advertising on platforms like Douyin and Xiaohongshu over long video platforms [3]. Group 4: Strategic Changes - Tencent Video is adapting to the changing landscape by launching over 20,000 vertical short dramas, which have gained significant traction with 3 billion views and 87 trending topics [3]. - Tencent's Vice President highlighted the need for the long video industry to adapt to new formats and the impact of AI on content production and consumption [3].

Group 1 - The Hang Seng Tech Index (HSTECH) decreased by 0.73% as of August 14, 2025, with mixed performance among constituent stocks [3] - Hua Hong Semiconductor (01347) led the gains with an increase of 3.76%, while Lenovo Group (00992) experienced the largest decline at 5.30% [3] - The Hang Seng Tech Index ETF (159742) fell by 0.26%, with a latest price of 0.76 yuan, and has seen a 1.33% increase over the past week [3] Group 2 - Tencent Holdings reported a 15% year-on-year revenue growth to 184.5 billion yuan in Q2, exceeding market expectations, with a net profit increase of 17% [4] - The gaming business showed strong recovery, with domestic game revenue up 17% and international game revenue up 35% [4] - AI-driven marketing services revenue grew by 20%, and Tencent's R&D investment increased by 17% [4] Group 3 - The Hang Seng Tech Index ETF reached a new high in scale at 2.563 billion yuan [4] - Over the past five trading days, there were three days of net inflows totaling 57.2 million yuan, with an average daily net inflow of 11.44 million yuan [4] - The latest financing buy-in amount for the Hang Seng Tech Index ETF was 17.1 million yuan, with a financing balance of 255 million yuan [4] Group 4 - The Hang Seng Tech Index ETF has seen a net value increase of 34.42% over the past three years [5] - The highest single-month return since inception was 33.70%, with an average monthly return of 7.44% [5] - The ETF's Sharpe ratio for the past year was 1.63, indicating strong risk-adjusted returns [5] Group 5 - The management fee for the Hang Seng Tech Index ETF is 0.50%, and the custody fee is 0.15% [6] - The ETF has the highest tracking accuracy among comparable funds, with a tracking error of 0.047% over the past three years [6] - The top ten weighted stocks in the Hang Seng Tech Index account for 69.1% of the index, including Tencent, Alibaba, and Xiaomi [6]

Core Viewpoint - The report from Credit Lyonnais indicates that Tencent Holdings (00700) exceeded expectations in its second-quarter performance, with revenue and adjusted operating profit growing by 15% and 19% year-on-year, surpassing forecasts by 4% and 8% respectively [1] Group 1: Financial Performance - Tencent's three core businesses—online gaming, advertising, and cloud services—each achieved approximately 20% revenue growth [1] - The adjusted net profit forecasts for 2025 and 2026 have been raised by 2% and 3% respectively [1] Group 2: Future Outlook - The upcoming launch of the mobile game "Valorant" within the month is viewed positively [1] - Continuous empowerment of various businesses through AI technology is expected to contribute to growth [1] Group 3: Target Price and Rating - The target price for Tencent has been increased from HKD 710 to HKD 740 [1] - The rating remains "highly confident to outperform the market" [1]

Core Viewpoint - Tencent Holdings (00700) reported better-than-expected Q2 performance, with revenue and adjusted operating profit increasing by 15% and 19% year-on-year, exceeding expectations by 4% and 8% respectively [1] Group 1: Financial Performance - Revenue and adjusted operating profit growth of 15% and 19% year-on-year [1] - Core businesses, including online games, advertising, and cloud services, achieved approximately 20% growth [1] Group 2: Future Outlook - Anticipation for the launch of the mobile game "Valorant" within the month [1] - Continuous empowerment of various businesses through AI technology [1] - Adjusted net profit forecasts for 2025 and 2026 increased by 2% and 3% respectively [1] - Target price raised from 710 HKD to 740 HKD, maintaining a "highly confident outperform" rating [1]

8月14日早盘，港股三大指数集体高开，恒指高开0.6％，国企指数高开0.69％，恒生科技指数高开 0.69%。开盘后，A股同赛道规模最大的恒生科技指数ETF（513180）跟随指数上扬，持仓股中，华 虹、哔哩哔哩、中芯国际、海尔智家、腾讯控股等涨幅居前。 消息面上，腾讯控股8月13日披露的二季报显示，AI技术及应用正加速转化为业绩动能。当季腾讯 实现营收1845亿元，同比增长15%，经营利润692.5亿元，同比增长18%。在核心业务坚实增长的同时， 腾讯持续加码AI战略投入：当季研发投入同比增长17%至202.5亿元，资本开支同比增长119%至191.1亿 元。隔夜美股方面，腾讯控股绩后ADR大涨。 花旗集团点评称，腾讯控股2025年第二季度营收加速增长，有力证明了其在营销服务、游戏和商业 服务领域的人工智能投资卓有成效。得益于国内游戏、视频账号、微信搜索等高利润率收入流以及有节 制的支出，毛利率/营业利润率/净利润率继续以22%/18%/20%的同比速度更快增长。展望未来，随着越 来越多的常青游戏的强劲收入、即将推出的《无畏契约》手游、《三角洲部队》贡献的增加、升级的广 告平台以及企业对GPU基础设施需求的 ...

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HK$ 670 [1][7]. Core Insights - The company reported Q2 2025 revenue of 184.5 billion RMB, a year-on-year increase of 15% and a quarter-on-quarter increase of 2%. Operating profit reached 60.1 billion RMB, up 18% year-on-year, while Non-IFRS net profit attributable to shareholders was 63.1 billion RMB, reflecting a 10% increase year-on-year [8]. - The company’s capital expenditure in Q2 increased by 119% year-on-year to 19.1 billion RMB, although it decreased by 30% quarter-on-quarter due to the impact of the overseas H20 ban. The company anticipates accelerated capital expenditure in the second half of the year as H20 supply restrictions ease [9]. - The integration of AI capabilities is expected to significantly enhance the company's advertising and gaming businesses, with the potential for substantial growth in direct advertising revenue from WeChat's AI search capabilities [8][10]. Company Overview - The company operates primarily in the media industry, with a market capitalization of approximately 400.71 billion RMB and a current share price of 586.00 RMB [2]. - The company’s product mix includes 31.3% from fintech and enterprise services, 30.1% from online gaming, 18.8% from social networking, and 18.5% from online advertising [4]. Financial Performance - The company’s projected net profit for 2025 is 225.28 billion RMB, with a year-on-year growth of 16.08%. The earnings per share (EPS) is expected to be 24.6 RMB, corresponding to a price-to-earnings (P/E) ratio of 24 times [12][14]. - The gross profit margin for Q2 was approximately 57%, an increase of 4 percentage points year-on-year, driven by improved margins across all major business segments [10]. Market Position - The company’s gaming revenue saw a year-on-year increase of 16% to 91.4 billion RMB, with domestic gaming growth at 17% and overseas gaming growth at 35% [10]. - The advertising revenue grew by 20% year-on-year to 35.8 billion RMB, outperforming the industry average, attributed to AI-driven enhancements in advertising platforms [10]. Future Outlook - The company is expected to maintain a strong growth trajectory, with anticipated revenue reaching 735.5 billion RMB in 2025, reflecting a continued upward trend in both gaming and advertising sectors [17].

Investment Rating - The report maintains a "Buy" rating for Tencent Holdings, with a target price of 767 HKD based on a 25x PE for 2025 [3][52]. Core Insights - Tencent's revenue and profit exceeded expectations, driven by strong performance in advertising and a deepening strategy in evergreen games, alongside comprehensive improvements in AI capabilities [3][4]. - For Q2 FY25, Tencent achieved a revenue of 184.5 billion RMB, a year-on-year increase of 14.5%, and an adjusted net profit of 63.1 billion RMB, up 10% year-on-year [52][18]. Financial Summary - **Revenue Forecast**: Projected revenues for 2025, 2026, and 2027 are 733.8 billion RMB, 797.3 billion RMB, and 871.3 billion RMB respectively, reflecting growth rates of 11.1%, 8.7%, and 9.3% [6][52]. - **Adjusted Net Profit**: Expected adjusted net profits for the same years are 255.3 billion RMB, 282.5 billion RMB, and 314.3 billion RMB, with growth rates of 14.6%, 10.7%, and 11.3% respectively [6][52]. - **Profitability Metrics**: The adjusted net profit margin is projected to improve from 25.9% in 2023 to 36.1% in 2027 [6]. Segment Performance - **Value-Added Services**: Revenue from value-added services reached 91.4 billion RMB in Q2 FY25, a 15.9% increase year-on-year, with a gross margin of 60.4% [52][26]. - **Marketing Services**: Marketing services generated 35.8 billion RMB, up 19.7% year-on-year, benefiting from AI-driven improvements in advertising platforms [52][31]. - **Financial Technology and Enterprise Services**: Revenue from this segment grew by 10.1% year-on-year, reaching 55.5 billion RMB, supported by increased demand for consumer loan services and business payment activities [52][39]. Operational Data - **AI Integration**: The report highlights the significant role of AI in enhancing operational efficiency and driving revenue growth across various segments, particularly in gaming and advertising [3][41]. - **User Engagement**: The monthly active users (MAU) for WeChat and QQ showed slight fluctuations, with WeChat MAU increasing by 0.6% and QQ decreasing by 0.4% in Q2 FY25 [42][48]. Earnings Forecast and Investment Recommendations - The report suggests that Tencent's ongoing investment in AI will continue to enhance its platform value, leading to robust revenue and profit growth [52][50].

Investment Rating - The report maintains a "Buy" rating for Tencent with a target price of 742.19 HKD, up from the previous 614.34 HKD [6][28]. Core Insights - Tencent's Q2 revenue grew by 14.5% year-on-year, exceeding consensus expectations by 3%. Key business segments such as value-added services, advertising, and fintech saw year-on-year growth of 16%, 20%, and 10% respectively, with corresponding improvements in gross margins [1][5][28]. - The company is positioned as a leading developer in the shooting game sector, with significant upcoming titles like "Delta Action" and "Valorant Mobile" expected to drive player engagement and monetization [1][12][15]. - Advertising revenue increased by 20% year-on-year, driven by strong performance in video accounts and mini-programs, with management indicating a low impact from the recently implemented advertising tax [3][5]. - Financial technology revenue exceeded expectations by 3%, with notable growth in consumer loans and payment services, while cloud business is expected to expand as AI demand increases [4][5]. Summary by Sections Q2 Performance - Tencent's Q2 adjusted net profit increased by 10% year-on-year, surpassing expectations by 3%, and a 22% increase when excluding the impact of joint ventures [1][10]. - The company reported a cash capital expenditure of 229 billion for AI-related investments, remaining stable quarter-on-quarter [1][10]. Gaming Sector - The value-added services revenue grew by 16%, with self-developed games contributing significantly to this growth. Domestic and overseas game revenues increased by 17% and 35% respectively, exceeding consensus expectations [2][11]. - "Delta Action" has become a top game, with its daily active users surpassing 20 million in July, indicating strong market performance [11][15]. Advertising and Fintech - Advertising revenue growth of 20% was driven by video accounts and mini-programs, with management noting that AI has improved click-through rates and overall advertising effectiveness [3][5]. - Fintech revenue grew by 10%, with a gross margin of 52.1%, attributed to an increase in consumer loans and cost efficiencies in cloud services [4][5]. Future Outlook - Revenue forecasts for Tencent have been adjusted upward for 2025-2027, with expected growth rates of 2.7%, 4.7%, and 4.8% respectively, driven by the continued expansion of WeChat mini-stores and AI product integration [5][28]. - The adjusted net profit estimates for 2025, 2026, and 2027 are projected to be 255.7 billion, 289 billion, and 330.4 billion RMB respectively [5][28].

Core Viewpoint - UBS reports that Tencent Holdings (00700) has exceeded expectations in its Q2 performance, with a 15% year-on-year revenue growth, surpassing market expectations by 3% [1] Financial Performance - Revenue increased by 15% year-on-year, exceeding market expectations by 3% [1] - Adjusted operating profit rose by 18% year-on-year, exceeding expectations by 5% [1] - Gross margin expansion contributed significantly to the strong performance [1] Business Segments - Online gaming and advertising businesses showed strong performance, providing visibility for revenue in the second half of the year [1] - Upcoming launches such as "Delta Action" PC version, "Valorant" mobile game, and the 10th anniversary event of "Honor of Kings" are expected to drive growth [1] Investment Outlook - UBS maintains Tencent as a top industry pick, raising the target price from HKD 710 to HKD 720 and reiterating a "Buy" rating [1] - Earnings per share forecasts for 2025 to 2027 have been increased by 3% to 4% [1] Capital Expenditure - Capital expenditure decreased by 30% quarter-on-quarter in Q2 [1] - UBS views this reduction as a short-term impact due to GPU import restrictions, with management indicating a continued diversified chip strategy and efficiency improvements [1]

Group 1 - The core viewpoint of the news is that Tencent Holdings reported strong financial results for the second quarter, with revenue and profit exceeding market expectations, driven by growth in gaming and AI investments [1][2]. - Tencent's second-quarter revenue reached RMB 184.5 billion, a 15% year-on-year increase, surpassing the forecast of RMB 178.94 billion [1]. - The company's net profit attributable to equity holders was RMB 55.63 billion, reflecting a 17% year-on-year growth, exceeding the expected RMB 50.83 billion [1]. Group 2 - In the domestic gaming market, Tencent's revenue was RMB 40.4 billion, up 17% year-on-year, supported by the recent release of "Delta Action" and growth from established games like "Honor of Kings" and "Peacekeeper Elite" [1]. - Tencent continues to invest in AI, resulting in double-digit percentage growth in both revenue and non-IFRS operating profit [1]. - The company is enhancing its advertising model to improve ad performance across platforms, contributing to rapid growth in marketing services revenue [1]. Group 3 - As of the second quarter of 2025, the combined monthly active accounts for WeChat and Weixin reached 1.411 billion, a 0.6% quarter-on-quarter increase and a 3% year-on-year increase [2]. - QQ's smart terminal monthly active accounts were 532 million, showing a 0.4% quarter-on-quarter decline and a 7% year-on-year decline [2]. Group 4 - On August 13, Tencent's stock closed up 4.74% at HKD 586.00, with a market capitalization of HKD 5.36 trillion [3].