Zhi Tong Cai Jing·2025-08-14 08:05Core Viewpoint - Bank of America reports that Tencent Holdings (00700) exceeded expectations in its second-quarter performance, with revenue growth accelerating to 15% year-on-year, reaching 185 billion RMB, which is 3% higher than expected [1] Financial Performance - Revenue increased by 15% year-on-year, totaling 185 billion RMB, surpassing expectations by 3% [1] - Adjusted operating profit grew by 18% year-on-year, amounting to 69 billion RMB, which is 4% higher than anticipated [1] - Gross margins across various business segments expanded, offsetting the cost impacts from artificial intelligence [1] Future Outlook - The bank maintains a positive view on the group's business growth and has raised profit forecasts for 2025 to 2027 by 2% [1] - Expectations for the second half of the year include continued growth in advertising business above industry rates, further recovery in FBS, and sustained game revenue supported by evergreen titles and potential new game releases [1] - The target price for Tencent has been raised from 631 HKD to 690 HKD, with a reiterated "buy" rating [1]