Core Viewpoint - Tencent is expected to report strong Q2 earnings, with revenue growth driven by its gaming business and improved advertising efficiency through AI, despite a slight slowdown in ad growth [1] Group 1: Financial Performance Expectations - Market anticipates Tencent's Q2 revenue to reach 179 billion yuan, a year-on-year increase of 12.2% [1] - Adjusted net profit is projected at 62.08 billion yuan, reflecting a year-on-year growth of 23.5% [1] - Nomura forecasts a lower revenue growth of 10%, estimating Q2 revenue at 177 billion yuan, and adjusted operating profit growth of 12% to 65.6 billion yuan, citing increased operational expenses [1] Group 2: Cost and Profitability Insights - Nomura expects a significant increase in general administrative and R&D expenses, projecting an 18% year-on-year rise [1] - The adjusted operating profit margin is anticipated to expand by 70 basis points to 37%, primarily due to continuous improvement in gross margins, which are expected to increase by 1.9 percentage points [1] Group 3: Business Segment Performance - Jefferies predicts accelerated cloud revenue growth due to the deployment of more GPUs, with a focus on enhancing advertising technology and foundational model training [1] - Citi estimates that value-added services revenue will grow by 13% year-on-year to 89.1 billion yuan, with online gaming revenue increasing by 17% to 56.8 billion yuan [1] - Domestic gaming revenue is expected to rise by 18% year-on-year, reaching 40.8 billion yuan, supported by stable performances from popular games like "Honor of Kings" and "Peacekeeper Elite" [1]

Core Viewpoint - Tencent Holdings is expected to report strong Q1 2025 results, with revenue and earnings per share projected to grow by 10% and 20% year-on-year, respectively, driven by high-margin businesses like advertising and gaming, as well as operational leverage [1][2][5] Group 1: Financial Performance Predictions - Goldman Sachs forecasts Tencent's Q1 revenue to grow by 10% year-on-year, reaching approximately 1,753 billion RMB, with adjusted EBIT expected to rise by 15% to 673 billion RMB [1][2] - Nomura anticipates Tencent's Q1 total revenue to increase by 10% to 1,760 billion RMB, with non-IFRS operating profit expected to rise by 19% to 700 billion RMB, exceeding market expectations [2] - Guosen Securities predicts Tencent's Q1 revenue to reach 1,765 billion RMB, reflecting an 11% year-on-year growth, with online advertising and gaming sectors contributing significantly [3] Group 2: Business Segment Insights - Gaming revenue is expected to grow by 15% year-on-year, driven by strong performance from established titles like "Honor of Kings" and new releases such as "Dungeon & Fighter Mobile" [2][3] - Online advertising revenue is projected to increase by 18% year-on-year, supported by the growth of video account ads and improved advertising technology [4][5] - Financial technology and enterprise services revenue is expected to grow by 5% year-on-year, with payment services being a major contributor [4] Group 3: Long-term Growth Potential - Tencent's unique WeChat ecosystem and global gaming assets are seen as key drivers for sustained profit growth, with a projected annual compound growth rate of 15% to 20% over the next three years [2][5] - The company is positioned well for the AI era, with significant potential in areas like WeChat e-commerce and AI-driven business enhancements not yet reflected in current profit forecasts [5]