Zhao Yin Guo Ji·2024-09-09 03:43Investment Rating - The report maintains a "Buy" rating for Tencent Holdings with a target price of HKD 480.00, indicating a potential upside of 28.5% from the current price of HKD 373.40 [3][4]. Core Insights - Tencent's cloud services have shown significant growth, with over 2 million customers and a double-digit increase in the number of partners with over a million orders. SaaS partner revenue has grown over 100% [1][8]. - The newly launched Mix Yuan Turbo model has improved inference efficiency by 100% and reduced inference costs by 20%, with pricing for output/input dropping to RMB 0.05/RMB 0.015 per thousand tokens [1][13]. - Tencent Cloud's AI infrastructure has achieved a daily failure rate of 0.16 per thousand kilocalories, significantly better than the industry average of 0.48 [1][16]. - The company is focusing on three growth engines: intelligent engine, integrated innovation engine, and internationalization engine, leveraging its AI capabilities to enhance enterprise services [1][11][21]. Financial Summary - For FY24E, Tencent's sales revenue is projected to reach RMB 658,187 million, with an adjusted net profit of RMB 214,576.3 million, reflecting a CAGR of 11% for enterprise service revenue from FY24 to FY26 [2][28]. - The adjusted earnings per share (EPS) for FY24E is estimated at RMB 22.16, with a price-to-earnings (P/E) ratio of 19.5 [2][28]. - The company’s market capitalization is approximately HKD 3,482,795.2 million, with a 52-week stock price range of HKD 397.00 to HKD 262.20 [4][3].