TENCENT(HK:00700) Zhi Tong Cai Jing·2025-08-13 03:37Group 1 - The technology stocks showed strong performance in early trading, with Tencent Music rising by 15.52% to HKD 102, Bilibili up by 5.68% to HKD 186, Alibaba increasing by 4.46% to HKD 121.8, Baidu up by 3.43% to HKD 87.55, and Tencent rising by 3.49% to HKD 579 [1] - The US July CPI remained flat year-on-year at 2.7%, below the expected 2.8%, while the core CPI rose by 3.1%, exceeding the expected 3%, marking the highest level since February [1] - Following the CPI data release, the market anticipates a greater than 90% probability of the Federal Reserve lowering interest rates in September [1] - Longcheng Securities indicated that the relative weakness of the Hang Seng Technology Index is not a long-term trend, as the strong dollar situation may not persist and the significant downward revision of US non-farm payrolls has ignited expectations for a rate cut [1] - The current dynamic PE of the Hang Seng Technology Index is only 21.87 times, highlighting its value proposition, and the acceleration of AI commercialization along with mid-year performance verification is expected to attract funds back into the growth sector [1] Group 2 - Tencent is set to release its Q2 2025 financial report today, with Citigroup expecting stable performance, estimating a 4.9% year-on-year increase in non-GAAP net profit to CNY 60.1 billion [2] - Revenue and profit are anticipated to meet or exceed both Citigroup's and market consensus expectations, with potential upside in the gaming business due to new game contributions and deferred revenue [2] - Citigroup forecasts that Tencent's gaming business will show robust revenue supported by strong seasonal factors, new game releases, and content upgrades entering Q3 2025, along with updates on AI models and new features [2]