Hua Er Jie Jian Wen·2025-08-15 06:38Core Insights - Tencent Holdings has regained favor in the capital markets following a strong quarterly earnings report, with over twenty analysts raising their target prices, resulting in a consensus target price increase of over 5% to HKD 688, indicating a potential upside of nearly 16% from the previous trading price of HKD 594.50 [1] - Goldman Sachs raised Tencent's target price from HKD 658 to HKD 701 and increased revenue and earnings per share forecasts for 2025 to 2027 by 1-6%, highlighting Tencent's visibility and sustainable profit growth prospects among Chinese internet giants [3] Financial Performance - Tencent's Q2 revenue grew by 15% year-on-year to RMB 184.5 billion, with major business segments, including advertising, achieving double-digit growth, attributed to AI-driven efficiency improvements [3] - The anticipated release of the new mobile game "Valorant Mobile" and the effective AI technologies validated by the earnings report are expected to drive future growth [3] Business Outlook - AI technology has transitioned from a concept to a practical tool, significantly enhancing the efficiency of advertising and gaming operations, leading to notable revenue growth [5] - The advertising business, particularly through platforms like video accounts, has substantial growth potential due to its low current commercialization level [5] - Tencent's gaming business outlook appears more stable, supported by new major game releases and a "platformization" strategy [5]