TENCENT(HK:00700) Zheng Quan Ri Bao·2025-10-12 15:48Core Viewpoint - Tencent has significantly increased its share buyback efforts, demonstrating its strategic commitment and value proposition to the capital market [1][2]. Buyback Efforts - Since mid-August, Tencent has raised its daily buyback amount from 500 million HKD to 550 million HKD, with a total buyback amount of 60.96 billion HKD for the year as of October 12, repurchasing 12.2 million shares [1][2]. - Tencent announced a minimum buyback scale of 80 billion HKD for 2025, despite a decrease from 112 billion HKD in 2024, while also increasing cash dividends by 32% to approximately 41 billion HKD [2]. - Tencent accounted for 43% of the total buyback amount in the Hong Kong market, which reached 141.57 billion HKD with 234 companies participating [2]. Financial Performance - Tencent's stock price rebounded from a low of 288.8 HKD per share to 651.5 HKD per share, reflecting a rise of over 125% as of October 12, supported by strong financial performance [4][5]. - For the first half of 2025, Tencent reported revenue of 364.5 billion HKD, a 14% year-on-year increase, with a net profit of 124.4 billion HKD, up 16% [4]. - The marketing services segment saw a revenue increase of 20% year-on-year, driven by improvements in AI-driven advertising platforms and enhanced demand from advertisers [4]. Strategic Insights - The cancellation of shares through buybacks is viewed as a "premium red envelope" for shareholders, enhancing per-share metrics and long-term value [3]. - Analysts suggest that stock buybacks serve as a "confidence booster" for the market, while strong performance in core business areas and new ventures provide a solid foundation for long-term value [5].