Shenwan Hongyuan Securities·2025-08-15 11:37Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 711 HKD, indicating an upside potential of 20.6% [6][8]. Core Insights - The company reported a strong Q2 2025 performance, with revenue reaching 184.5 billion HKD, a year-on-year increase of 15%, surpassing Bloomberg consensus estimates by 3% [6]. - Adjusted net profit for Q2 2025 was 63.1 billion HKD, reflecting a 10% year-on-year growth, also exceeding expectations [6]. - The gaming segment showed robust growth, particularly in international markets, with game revenues increasing by 35% year-on-year [6]. - Advertising revenue grew by 20% year-on-year, driven by AI enhancements that improved targeting and click-through rates [6]. - Financial technology and enterprise services revenue increased by 10% year-on-year, marking a return to double-digit growth [6]. Financial Data and Profit Forecast - Revenue projections for the company are as follows: - 2023: 609 billion HKD - 2024: 660.3 billion HKD - 2025E: 746.4 billion HKD - 2026E: 828 billion HKD - 2027E: 904.5 billion HKD - Adjusted net profit forecasts are: - 2023: 157.7 billion HKD - 2024: 222.7 billion HKD - 2025E: 255.6 billion HKD - 2026E: 298 billion HKD - 2027E: 336.8 billion HKD - Earnings per share (EPS) estimates are: - 2023: 16.68 HKD - 2024: 24.03 HKD - 2025E: 27.87 HKD - 2026E: 32.49 HKD - 2027E: 36.73 HKD [3][9]. Market Data - The closing price of the company's stock is 590 HKD, with a market capitalization of approximately 541.07 billion HKD [4]. - The stock has a 52-week high of 600 HKD and a low of 364.2 HKD [4].