TENCENT(00700) 第一上海证券·2025-03-04 07:44Investment Rating - The report assigns a positive investment rating to Tencent Holdings (700.HK) [3]. Core Insights - Tencent has launched the TurboS model, which significantly reduces response time and enhances processing capabilities, positioning it competitively against leading models like DeepSeek V3 and GPT-4o [3]. - The introduction of the Tencent Yuanbao desktop version enhances its AI capabilities, supporting various advanced features and achieving a 127% increase in monthly active users since integrating DeepSeek [4]. - Tencent's Interactive Entertainment Group has undergone a structural adjustment to focus on vertical markets and refined operations, aiming to enhance efficiency and competitive strength in specific gaming segments [5]. - The WeChat Mini Store has initiated a brand merchant incentive program to accelerate e-commerce growth, offering reduced service fees and enhanced visibility for participating brands [6]. Summary by Sections AI Developments - Tencent launched the TurboS model on February 27, 2025, which features a 44% reduction in initial response time and doubles the output speed, with a cost-effective API pricing structure [3]. - The Tencent Yuanbao desktop version was released on March 1, 2025, supporting advanced features like 64k token processing and image semantic analysis, contributing to a significant increase in user engagement [4]. Gaming Sector - On February 26, 2025, Tencent's Interactive Entertainment Group announced a new organizational structure focusing on specialized departments to enhance operational efficiency and competitive positioning in the gaming market [5]. E-commerce Initiatives - The WeChat Mini Store's brand merchant incentive program, running from March 5 to June 30, 2025, aims to boost e-commerce growth by offering reduced fees and increased exposure for new brands [6].