TENCENT(00700) 华安证券·2025-05-18 00:25Investment Rating - The investment rating for Tencent Holdings is "Buy" (maintained) [1] Core Views - Tencent's Q1 revenue reached 1800.2 billion CNY, representing a year-over-year increase of 12.9% and a quarter-over-quarter increase of 4.4%, exceeding consensus expectations of 1756.0 billion CNY [4] - The company's gross profit for Q1 was 1004.9 billion CNY, up 19.8% year-over-year and 10.9% quarter-over-quarter, also surpassing the consensus estimate of 947.7 billion CNY [4] - Adjusted net profit for Q1 was 613.3 billion CNY, reflecting a year-over-year growth of 22.0% and a quarter-over-quarter increase of 10.9%, exceeding the consensus forecast of 596.8 billion CNY [4] Summary by Sections Q1 Performance - Tencent's Q1 revenue was 1800.2 billion CNY, with a gross profit of 1004.9 billion CNY and adjusted net profit of 613.3 billion CNY, all beating market expectations [4] Value-Added Services (VAS) - Domestic game revenue in Q1 was 429 billion CNY, up 24% year-over-year, driven by seasonal peaks in popular games like "Honor of Kings" and "Crossfire Mobile" [5] - International game revenue reached 166 billion CNY, a 22% year-over-year increase, supported by titles such as "Brawl Stars" and "PUBG MOBILE" [5] Marketing Business - Marketing revenue for Q1 was 319 billion CNY, a 20% year-over-year increase, driven by strong demand for advertising on platforms like WeChat and video accounts [6] - The combined monthly active users (MAU) for WeChat and WeChat reached 1.402 billion, a 3% year-over-year increase [6] Financial Technology - Financial technology revenue was 549 billion CNY, a 5% year-over-year increase, with gross margin improving to 50% [7] AI Investments - Tencent's capital expenditure in Q1 was 274.8 billion CNY, a 91% year-over-year increase, reflecting ongoing investments in AI across various business lines [8] Profit Forecast - The projected net profits for Tencent for 2025, 2026, and 2027 are 2560.2 billion CNY, 2973.9 billion CNY, and 3384.8 billion CNY respectively, with a stable pipeline of new games and AI integration across business lines [10]