TENCENT(00700) 交银国际证券·2024-09-17 08:09Investment Rating - The report maintains a "Buy" rating for Tencent Holdings with a target price of 486 HKD, indicating a potential upside of 30.2% from the current closing price of 373.40 HKD [4]. Core Insights - Tencent is enhancing its product matrix, focusing on large model capabilities and accelerating their application in various scenarios. The company has upgraded its large model to "Hunyuan Turbo," which improves inference efficiency and decoding speed by 100% and 20%, respectively, at half the cost of the previous generation [1]. - Tencent Cloud has surpassed 11,000 ecosystem partners and serves over 2 million customers, demonstrating healthy and sustainable business growth. The number of partners with orders exceeding one million has also seen double-digit growth [1]. - The company is expanding its international digital solutions, helping businesses iterate commercially in their global strategies. For instance, ultra-low latency live streaming has improved interaction and transaction rates for e-commerce platforms [1][2]. Summary by Sections Product Development - Tencent has launched several new products, including the Tencent Cloud Intelligent Computing brand, which boasts superior performance and stability, with a daily failure rate one-third of the industry average. The training startup time is reduced to just one day [1]. - The introduction of the RAG solution allows for quick AI application development with minimal coding, supporting multi-modal retrieval and achieving double the industry average performance [1]. International Expansion - Tencent Cloud has accumulated over 10,000 overseas clients, with international business maintaining double-digit growth over the past three years. Notable clients include Meituan's Hong Kong delivery platform and the live streaming app JACO in Saudi Arabia [2]. - The report highlights Tencent's ability to enhance user experience and retention through improved server access speeds and upgraded product capabilities for international meetings, which have seen a nearly 50% increase in overseas meeting numbers since the beginning of the year [1][2].