GF SECURITIES·2025-12-19 01:59Investment Rating - The report maintains a "Buy" rating for Tencent Holdings (00700.HK) with a current price of 605.00 HKD and a fair value of 754.73 HKD [10]. Core Insights - Tencent Cloud is leveraging its domestic advantages to expand its overseas business, particularly in Southeast Asia and the Middle East, with a focus on stable energy and power supply for data centers [10][12]. - The company has developed a comprehensive AI strategy, integrating AI into its business model and enhancing talent acquisition, which is expected to accelerate growth [10][16]. - The financial forecast remains unchanged, with projected revenues of 7,524 billion RMB and 8,278 billion RMB for 2025 and 2026, respectively, reflecting growth rates of 14.0% and 10.0% [10][25]. Financial Projections - Revenue (in billion RMB): - 2023A: 6,090 - 2024A: 6,603 - 2025E: 7,524 - 2026E: 8,278 - 2027E: 8,915 - EBITDA (in billion RMB): - 2023A: 2,119 - 2024A: 2,941 - 2025E: 3,022 - 2026E: 3,528 - 2027E: 3,991 - Net profit attributable to shareholders (in billion RMB): - 2023A: 1,577 - 2024A: 2,227 - 2025E: 2,586 - 2026E: 2,953 - 2027E: 3,295 - EPS (in RMB/share): - 2023A: 16.32 - 2024A: 23.51 - 2025E: 28.32 - 2026E: 32.34 - 2027E: 36.09 - P/E Ratio: - 2023A: 16.3 - 2024A: 16.1 - 2025E: 19.4 - 2026E: 17.0 - 2027E: 15.2 - ROE (%): - 2023A: 19.5% - 2024A: 22.9% - 2025E: 22.4% - 2026E: 21.7% - 2027E: 20.8% [4][10]. Tencent Cloud Expansion - Tencent Cloud has established infrastructure in 22 physical regions and 64 availability zones globally, with over 3,200 acceleration nodes, focusing on Southeast Asia and the Middle East for future growth [12][10]. - The strategy for acquiring core customers in Southeast Asia includes deepening relationships with local leading enterprises and serving Chinese companies expanding overseas [13][10]. AI Integration - Tencent's AI strategy encompasses infrastructure, platform tools, and application layers, with significant investments in talent acquisition to enhance AI capabilities [16][10]. - AI is expected to drive growth in advertising and gaming sectors, with improvements in user experience and operational efficiency [17][10].