Ge Long Hui·2025-07-14 02:23Core Viewpoint - Tencent is expected to achieve a revenue of 178.3 billion yuan in Q2 2025, representing an 11% year-on-year growth, with an adjusted net profit of 60.2 billion yuan, up 5% year-on-year [1][2]. Group 1: Gaming Performance - Tencent's online gaming revenue is projected to grow by 14% year-on-year in Q2 2025, with both domestic and overseas markets showing double-digit growth [1]. - New games launched in Q2/Q3 2024, such as "DNFM" and "Delta Action," are contributing to this growth, with "Delta Action" achieving over 12 million daily active users in April, the highest level in nearly three years for new games [1]. Group 2: Advertising Revenue - Advertising revenue is expected to grow by 17% year-on-year in Q2 2025, driven by Video Accounts and Search, with AI enhancing the advertising platform and WeChat ecosystem [1]. - The growth in Video Accounts advertising revenue is anticipated to continue, supported by improvements in loading rates, fill rates, and duration [1]. Group 3: Financial Technology and Enterprise Services - Financial technology and enterprise services revenue is projected to grow by 5% year-on-year in Q2 2025, with payment services being closely tied to macroeconomic conditions [2]. - Enterprise services are expected to maintain double-digit growth, with contributions from cloud services and WeChat e-commerce technology service fees [2]. Group 4: AI Integration - AI has been fully integrated into Tencent's various businesses, enhancing advertising targeting capabilities and creative solutions [2]. - In gaming, AI is optimizing matching experiences and increasing user engagement for long-standing games [2]. - The demand for AI applications is driving growth in computing power, storage, networking, databases, and big data infrastructure capabilities [2]. Group 5: Share Buyback - As of July 10, 2025, Tencent has repurchased over 40 billion Hong Kong dollars worth of shares, with a commitment to repurchase no less than 80 billion Hong Kong dollars in 2025 [2]. Group 6: Profit Forecast and Valuation - The adjusted net profit forecasts for Tencent for 2025-2027 have been slightly lowered to 250.7 billion, 281.3 billion, and 309.3 billion yuan respectively [3]. - The target price based on the SOTP valuation method is set at 673 Hong Kong dollars, indicating a potential upside of 35.5% [3].