游戏表现亮眼，AI持续赋能核心业务

Investment Rating - The report maintains a "Buy" rating for Tencent with a target price of 700 HKD, indicating a potential upside of 34% from the current price of 521 HKD [3][20]. Core Insights - Tencent's 1Q25 revenue reached 180 billion RMB, a 13% year-on-year increase, exceeding market expectations by 2.5%. The gross margin improved to 55.8%, up 3.2 percentage points year-on-year, with adjusted net profit growing by 22% to 61.3 billion RMB [1][2]. - The gaming segment showed strong performance, with domestic game revenue increasing by 24% to 42.9 billion RMB, driven by flagship titles like "Honor of Kings" and the successful launch of new games [1][2]. - AI continues to empower core business areas, particularly in advertising and gaming, contributing to a 20% year-on-year growth in advertising revenue to 31.9 billion RMB [2]. Financial Performance Summary - The report projects FY25E revenue at 724.4 billion RMB, with adjusted net profit expected to reach 254.0 billion RMB, reflecting a growth trajectory supported by AI investments and improved operational efficiency [5][11]. - Management expenses rose by 36% year-on-year, primarily due to one-time overseas expenditures and AI R&D investments, but the overall revenue growth is expected to offset these costs [2][5]. - The report highlights a consistent improvement in gross margins across all segments, with a focus on maintaining profitability despite increased costs associated with AI initiatives [2][3].