TENCENT(HK:00700) 第一财经·2025-07-23 10:20Core Viewpoint - Tencent Holdings has shown significant stock performance and growth in revenue, particularly in AI investments and marketing services, indicating a strong market position and future potential for growth [1][2][3]. Group 1: Stock Performance - As of July 23, Tencent's stock price reached 552 HKD per share, marking a nearly four-year high, with a market capitalization of 5.06 trillion HKD [1]. - The Hang Seng Index has also seen an increase, surpassing 25,000 points, with Tencent's stock price rising over 30% year-to-date [1]. Group 2: Financial Performance - In Q1 of this year, Tencent reported revenue of 1800.22 billion CNY, a year-on-year increase of 13%, and a non-IFRS operating profit of 693.2 billion CNY, up 18% year-on-year [2][3]. - The gross margin for Tencent in Q1 was 56%, reflecting a 3 percentage point increase compared to the previous year [1]. Group 3: AI Investments - Tencent has been actively investing in AI, with plans for a capital expenditure of 10.7 billion USD in 2024, which is about 12% of its revenue for that period [2]. - The company has developed its own AI model and integrated it into its applications, although there has been a decline in downloads for its AI app, Tencent Yuanbao, in recent months [2]. Group 4: Marketing Services Growth - Marketing services revenue increased by 20% year-on-year in Q1, driven by AI upgrades to the advertising platform and optimizations in the WeChat transaction ecosystem [3]. - The CEO of Tencent stated that AI capabilities have significantly contributed to the performance of advertising and gaming businesses, suggesting a positive impact on overall revenue [3]. Group 5: Share Buyback - Tencent repurchased 307 million shares last year, totaling 112 billion HKD, and plans to repurchase at least 80 billion HKD worth of shares by 2025 [3].