TENCENT(HK:00700) Xin Lang Cai Jing·2026-01-27 05:09Core Insights - The WeChat business group (WXG) remains a crucial pillar for Tencent, with expectations for growth in features like video accounts and WeChat stores, emphasizing the need for patience and strategic implementation of new technologies [2][31] - The 2026 WeChat Open Class PRO event showcased significant interest, with a full house and announcements of 30 new features, indicating a strong focus on monetization despite the surrounding AI hype [3][32] WeChat Store Performance - In the past year, WeChat Store has transitioned from a supplementary channel to a primary platform for brand operations, with brand sales growth exceeding the market average by 430%, and the number of active merchants increasing by 170% [5][34] - The user demographic has shifted, with a 336% increase in users aged 25, and over 32% of users now coming from high-tier cities, challenging the stereotype that WeChat shopping is only for older users [5][34] Ecosystem Strategy - The platform prioritizes ecosystem growth over short-term revenue, focusing on metrics like GMV and user growth while reducing the emphasis on immediate income [7][36] - WeChat's strategy includes enhancing natural traffic and reducing low-quality traffic, which has decreased from 30% to single digits through AI technology [7][36] Service Provider Dynamics - Over 5,900 new service providers joined in 2025, contributing to a monthly growth rate of 37.6% for new stores, with a significant portion of these providers rated four or five stars [8][38] - The retention rate for core service providers is high at 64%, attributed to stable policies and the complexity of platform rules, which necessitate strong operational capabilities from service providers [9][38] Future Directions - In 2026, WeChat will focus on enhancing service provider matching capabilities and simplifying platform policies, aiming to expand scene and category limitations [11][40] - The platform will introduce new features to improve user engagement and operational efficiency, including tools for social interaction and enhanced marketing capabilities [23][54] Revenue Opportunities - WeChat plans to leverage new product capabilities and tools in 2026, with significant potential for revenue generation in live streaming, short videos, and public accounts [53][57] - The introduction of features like "gift giving" in live streams and enhanced content matching in short videos aims to optimize user experience and drive sales [53][54]