First Shanghai Securities·2025-06-10 05:53Investment Rating - The report assigns a rating to Tencent Holdings (700.HK) [2] Core Insights - Tencent is enhancing its e-commerce capabilities through the introduction of a group buying feature in WeChat Mini Stores, shifting from a transaction-oriented to a social-oriented model [3] - The launch of the "VISVISE" AI game creation solution marks Tencent's commitment to integrating AI across the entire game development process, aiming to improve efficiency and creativity in the gaming industry [4] - Tencent's AI application, Yuanbao, is focusing on integration with core Tencent apps rather than aggressive user acquisition, reflecting a strategic shift in resource allocation [5] - The upcoming mobile game "Valorant: Source Action" has already surpassed 20 million pre-registrations, indicating strong market interest and potential revenue growth for Tencent [6] E-commerce Developments - WeChat Mini Stores are testing a group buying feature that allows users to share links with friends, enhancing social trust in product quality and reducing decision-making costs [3] AI Innovations - Tencent's "VISVISE" solution includes tools for model generation and character animation, aiming to streamline the game development process [4] - The download volume for AI apps in mainland China has decreased, with Yuanbao's market share declining, prompting a shift towards better integration with existing Tencent applications [5] Gaming Sector Updates - The mobile adaptation of "Valorant" is expected to generate annual revenue of at least 6 billion to 7 billion yuan, showcasing Tencent's strong position in the gaming market [6]