TENCENT(HK:00700) Ge Long Hui·2025-08-14 02:52Core Viewpoint - Citigroup's research report indicates that Tencent's revenue growth accelerated to 15% year-on-year in Q2, reflecting significant results from its AI investments in marketing services, gaming, and enterprise services [1] Revenue and Profit Growth - Tencent benefited from the growth of high-margin businesses such as domestic gaming, video accounts, and WeChat search, leading to a gross profit increase of 22% [1] - Operating profit and net profit growth rates reached 18% and 20%, respectively [1] AI Technology Application - The company has successfully applied AI technology in various aspects of gaming, including game production, gameplay design, promotion, and advertising recommendations, enhancing its competitive edge in the ecosystem [1] Future Outlook - Looking ahead, Tencent is expected to see steady revenue growth from its evergreen games, the launch of the mobile game "Valorant," increased contributions from "Delta Force," upgrades to its advertising platform, and rising enterprise GPU demand [1] - Citigroup believes that the growth paths for Tencent's various businesses will become clearer, reaffirming a "buy" rating and industry preference, while raising the target price to HKD 735 [1]