Ge Long Hui·2025-08-15 03:45Group 1 - The core viewpoint of the report indicates that Tencent's Q2 total revenue increased by 15% year-on-year to 184.5 billion yuan, surpassing both the bank's and market expectations by 4% and 3% respectively [1] - Gross profit rose by 22% year-on-year, outpacing revenue growth, with gross margin improving by approximately 3.6 percentage points to 57%, driven by high-margin businesses such as local games, video accounts, and search revenue contributions, as well as cost optimization in payment and cloud services [1] - Adjusted earnings per share were 6.79 yuan, a 13% year-on-year increase, exceeding the bank's and market expectations by 5% and 3% respectively [1] Group 2 - The bank noted that Tencent's better-than-expected performance enhances market confidence in the company's sustained robust growth, forecasting an overall revenue growth of 11% for Q3, compared to the previous market expectation of 10% [1] - Revenue growth rates for social, gaming, FBS, and marketing are projected at 7%, 13%, 7%, and 18% respectively, benefiting from evergreen games, new game schedules, financial services, and increased demand for cloud and API/GPI driven by AI, along with enhanced advertising monetization efficiency [1] - The bank has raised its revenue and profit forecasts for 2025 to 2027 by 2% to 3% and 2% to 10% respectively, increasing the target price from 604 HKD to 700 HKD while maintaining a "buy" rating [1]