智通财经网·2025-08-11 08:21Core Viewpoint - Citi has raised the target price for Tencent Holdings (00700) from HKD 645 to HKD 710, maintaining a "highly confident outperform" rating based on robust growth in gaming and advertising, as well as the success of new games [1] Group 1: Financial Projections - Tencent is expected to continue its solid growth in gaming and advertising into Q2 2025, with total revenue and adjusted EBIT projected to increase by 10.1% and 10.2% year-on-year, reaching RMB 177.3 billion and RMB 64.4 billion respectively [1] - Online gaming revenue is anticipated to rise due to strong performance from classic games, particularly "Honor of Kings" and "PUBG Mobile," along with the success of new titles such as "Delta Force" and "Nikke" [1] Group 2: Advertising and Cloud Business - Tencent's advertising revenue is likely to benefit from upgrades in advertising technology, as well as growth in video accounts, mini-programs, and search services [1] - The cloud business revenue is expected to recover to double-digit growth driven by strong demand for artificial intelligence (AI) [1]