TENCENT(HK:00700) 雷峰网·2025-08-15 00:35Core Viewpoint - The key to Tencent's stock price returning to 700 lies in its AI business, which is expected to drive significant growth in revenue and profitability [2][5]. Financial Performance - Tencent reported revenue of 184.5 billion RMB for Q2 2025, a year-on-year increase of 15%, and operating profit of 69.2 billion RMB, up 18% year-on-year [2]. - The gaming segment generated 40.4 billion RMB in domestic revenue, reflecting a 17% year-on-year growth, with the new FPS game "Delta Operation" achieving over 20 million daily active users [2]. - International gaming revenue reached 18.8 billion RMB, a 35% year-on-year increase, driven by content updates in "Clash Royale" and growth in "PUBG Mobile" [2]. Growth Drivers - The growth in Tencent's revenue is significantly attributed to its video accounts, mini-programs, and search features, which have shown year-on-year growth rates exceeding 50% [3]. - AI is enhancing advertising effectiveness through improved conversion rates and user engagement, contributing to a healthier growth cycle [4]. Market Expectations - Investors are particularly focused on Tencent's AI business, which is anticipated to support substantial business growth, potentially exceeding ten percentage points [5]. - The market is looking for more compelling narratives around AI, especially in areas like AI programming and video generation, to stabilize Tencent's stock price at 700 [5]. Capital Expenditure - Tencent's capital expenditure for the quarter was 19.107 billion RMB, a year-on-year increase of 118.89%, but it has not yet reached half of the 100 billion RMB target for the first half of the year [5].