KAIYUAN SECURITIES·2025-08-14 14:34Investment Rating - The investment rating for Tencent Holdings is "Buy" (maintained) [1][3] Core Insights - Tencent Holdings reported Q2 2025 revenue of 184.5 billion yuan, a year-on-year increase of 15% and a quarter-on-quarter increase of 2%. The net profit attributable to shareholders was 55.6 billion yuan, up 17% year-on-year and 16% quarter-on-quarter [3][4] - The company is optimistic about AI-driven growth in gaming and advertising, leading to an upward revision of profit forecasts for 2025-2027. Expected net profits for these years are 226.4 billion, 256.2 billion, and 288.7 billion yuan respectively, with corresponding EPS of 24.7, 27.9, and 31.5 yuan [3][4] - The gross margin improved by 4 percentage points to 57%, driven by high-margin businesses such as domestic gaming and video services [3][4] Financial Summary and Valuation Metrics - Revenue projections for Tencent Holdings are as follows: 609.0 billion yuan in 2023, 660.3 billion yuan in 2024, and 756.4 billion yuan in 2025, reflecting year-on-year growth rates of 9.8%, 8.4%, and 14.6% respectively [5] - The net profit is projected to be 115.2 billion yuan in 2023, 194.1 billion yuan in 2024, and 226.4 billion yuan in 2025, with year-on-year growth rates of -38.8%, 68.4%, and 16.7% respectively [5] - The price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are projected to be 21.9, 19.3, and 17.2 respectively, indicating a favorable valuation trend [5]