TENCENT(HK:00700) Ge Long Hui·2025-08-14 07:40Core Viewpoint - Bank of America reports that Tencent's Q2 performance exceeded expectations, with revenue growth accelerating to 15% year-on-year, reaching 185 billion yuan, which is 3% higher than expected [1] Group 1: Financial Performance - Revenue for Tencent in Q2 reached 185 billion yuan, reflecting a 15% year-on-year growth, surpassing expectations by 3% [1] - Adjusted operating profit grew by 18% year-on-year, amounting to 69 billion yuan, which is 4% higher than anticipated [1] - The expansion of gross margins across various business segments offset the cost impacts from artificial intelligence [1] Group 2: Future Outlook - The bank maintains a positive outlook on Tencent's business growth, raising profit forecasts for 2025 to 2027 by 2% [1] - It is anticipated that advertising business will continue to grow at a rate higher than the industry average, while gaming revenue will be supported by evergreen games and the potential of new game releases [1] - The target price for Tencent has been increased from 631 HKD to 690 HKD, with a reiterated "buy" rating [1]