TENCENT(00700) 格隆汇·2025-05-16 17:40Core Insights - Tencent's revenue for Q1 2025 reached 180 billion RMB, marking a 13% year-on-year growth, primarily driven by advertising and gaming sectors [1] - Adjusted operating profit for Q1 2025 was 69.3 billion RMB, reflecting an 18% year-on-year increase, while Non-IFRS net profit rose by 22% to 61.3 billion RMB [1] - The company is optimistic about the potential of AI applications, which have already made significant contributions to existing businesses and new initiatives [2] Revenue Performance - Advertising and gaming businesses showed strong performance, with overall revenue growth of 13% year-on-year and adjusted profit growth of 22% [1] - Online gaming revenue increased by 24% year-on-year, with domestic gaming revenue also up by 24% to 42.9 billion RMB [3] - The company's online gaming revenue for Q1 2025 was 59.5 billion RMB, a 23.7% increase year-on-year [2] Business Segments - The gaming segment benefited from the success of evergreen games like "Honor of Kings" and "Crossfire Mobile," which achieved record-high revenues [3] - The marketing services segment saw a 20% year-on-year increase in online advertising revenue, reaching 31.9 billion RMB, driven by traffic growth and enhanced AI models [3] - Financial technology and enterprise services revenue grew by 5% year-on-year to 54.9 billion RMB, with a recovery in growth rates observed [4] Future Outlook - The company is expected to maintain robust performance, with long-term growth potential in areas like WeChat e-commerce and AI applications not fully reflected in current profit forecasts [4] - Projected adjusted net profits for 2025-2027 are estimated at 252.5 billion RMB, 283.2 billion RMB, and 312.9 billion RMB respectively [4]