Huachuang Securities·2024-09-10 06:40Investment Rating - The report maintains a "Recommended" rating for Tencent Holdings (00700.HK) [1][3]. Core Views - The 2024 Tencent Global Digital Ecosystem Conference showcased Tencent's latest achievements in the industrial internet sector, emphasizing its cloud services and AI capabilities to support business growth across various industries [1]. - Tencent Cloud has upgraded its product systems focusing on intelligence, innovation, and internationalization, aiming to assist enterprises in achieving growth through AI implementation and overseas expansion [1]. - The report forecasts Tencent's revenue and profit growth, projecting revenues of 665.5 billion, 725.7 billion, and 784 billion yuan for 2024, 2025, and 2026 respectively, with year-over-year growth rates of 9%, 9%, and 8% [1]. Summary by Sections Conference Highlights - The conference theme was "Intelligent New Opportunities, Cloud-Driven Growth," highlighting Tencent's advancements in cloud products and AI models [1]. - Key product releases included the MoE model "Tencent Mix Yuan Turbo," which doubles inference efficiency and reduces costs by 50% [1]. - Tencent Cloud's new AI infrastructure brand "Tencent Cloud Intelligence" integrates high-performance computing, networking, and storage solutions [1]. International Strategy - Tencent Cloud's international strategy has led to over 10,000 overseas clients and more than 11,000 global partners [1]. - The report notes a growth rate exceeding 70% in the outbound business for various industries, with significant growth in the Asia-Pacific and Middle East regions [1]. Product Innovation - Tencent Cloud has developed a comprehensive product system to enhance operational efficiency for enterprises, covering various sectors including finance, transportation, and healthcare [1]. - The report emphasizes the alignment of Tencent Cloud's product offerings with the urgent needs of businesses for digital transformation [1]. Financial Projections - The report projects Tencent's total revenue for 2024 to be 665.5 billion yuan, with a year-over-year growth of 9.3% [1]. - Non-IFRS net profit is expected to reach 178.0 billion yuan in 2024, reflecting a significant recovery from previous declines [1]. - The projected earnings per share (EPS) for 2024 is 19.03 yuan, with a target valuation of 473.63 to 526.25 HKD based on a 18-20x PE ratio [1][3].