Core Viewpoint - The report from Credit Lyonnais indicates that Tencent Holdings (00700) exceeded expectations in its second-quarter performance, with revenue and adjusted operating profit growing by 15% and 19% year-on-year, surpassing forecasts by 4% and 8% respectively [1] Group 1: Financial Performance - Tencent's three core businesses—online gaming, advertising, and cloud services—each achieved approximately 20% revenue growth [1] - The adjusted net profit forecasts for 2025 and 2026 have been raised by 2% and 3% respectively [1] Group 2: Future Outlook - The upcoming launch of the mobile game "Valorant" within the month is viewed positively [1] - Continuous empowerment of various businesses through AI technology is expected to contribute to growth [1] Group 3: Target Price and Rating - The target price for Tencent has been increased from HKD 710 to HKD 740 [1] - The rating remains "highly confident to outperform the market" [1]

Core Viewpoint - Tencent Holdings (00700) reported better-than-expected Q2 performance, with revenue and adjusted operating profit increasing by 15% and 19% year-on-year, exceeding expectations by 4% and 8% respectively [1] Group 1: Financial Performance - Revenue and adjusted operating profit growth of 15% and 19% year-on-year [1] - Core businesses, including online games, advertising, and cloud services, achieved approximately 20% growth [1] Group 2: Future Outlook - Anticipation for the launch of the mobile game "Valorant" within the month [1] - Continuous empowerment of various businesses through AI technology [1] - Adjusted net profit forecasts for 2025 and 2026 increased by 2% and 3% respectively [1] - Target price raised from 710 HKD to 740 HKD, maintaining a "highly confident outperform" rating [1]

Group 1 - The core viewpoint of the report indicates that Tencent's Q2 revenue and adjusted earnings per share grew by 15% and 13% year-on-year, respectively, aligning with market expectations [1] - The company anticipates continued strong growth in its gaming business, driven by titles such as "Delta Force" and "Clash Royale," which are expected to sustain double-digit growth in gaming revenue for the second half of the year [1] - The recently launched mobile game "Valorant" is expected to act as a short-term catalyst for revenue growth [1] Group 2 - Marketing services revenue increased by 20% in Q2, attributed to higher click-through rates and increased impressions from WeChat and video accounts, with projections of maintaining a 20% growth rate from 2025 to 2027 [1] - Based on the favorable outlook for gaming growth, the company has revised its revenue and earnings per share forecasts for 2025 to 2027 upwards by 1% to 5% and 3% to 6%, respectively [1] - The target price for Tencent has been raised from HKD 670 to HKD 750, with a reiterated "buy" rating [1]

Core Viewpoint - Tencent's Q2 performance exceeded expectations, with revenue and adjusted operating profit growing by 15% and 19% year-on-year, surpassing the firm's forecasts by 4% and 8% respectively [1] Group 1: Business Performance - The three core businesses—online gaming, advertising, and cloud services—each achieved approximately 20% growth [1] - The upcoming launch of the mobile game "Valorant" is anticipated to contribute positively to revenue [1] Group 2: Financial Projections - The firm has raised its adjusted net profit forecasts for 2025 and 2026 by 2% and 3% respectively [1] - The target price for Tencent has been increased from HKD 710 to HKD 740, maintaining a "highly confident outperform" rating [1]

Core Viewpoint - Citigroup's research report indicates that Tencent's revenue growth accelerated to 15% year-on-year in Q2, reflecting significant results from its AI investments in marketing services, gaming, and enterprise services [1] Revenue and Profit Growth - Tencent benefited from the growth of high-margin businesses such as domestic gaming, video accounts, and WeChat search, leading to a gross profit increase of 22% [1] - Operating profit and net profit growth rates reached 18% and 20%, respectively [1] AI Technology Application - The company has successfully applied AI technology in various aspects of gaming, including game production, gameplay design, promotion, and advertising recommendations, enhancing its competitive edge in the ecosystem [1] Future Outlook - Looking ahead, Tencent is expected to see steady revenue growth from its evergreen games, the launch of the mobile game "Valorant," increased contributions from "Delta Force," upgrades to its advertising platform, and rising enterprise GPU demand [1] - Citigroup believes that the growth paths for Tencent's various businesses will become clearer, reaffirming a "buy" rating and industry preference, while raising the target price to HKD 735 [1]

Core Viewpoint - UBS reports that Tencent Holdings (00700) has exceeded expectations in its Q2 performance, with a 15% year-on-year revenue growth, surpassing market expectations by 3% [1] Financial Performance - Revenue increased by 15% year-on-year, exceeding market expectations by 3% [1] - Adjusted operating profit rose by 18% year-on-year, exceeding expectations by 5% [1] - Gross margin expansion contributed significantly to the strong performance [1] Business Segments - Online gaming and advertising businesses showed strong performance, providing visibility for revenue in the second half of the year [1] - Upcoming launches such as "Delta Action" PC version, "Valorant" mobile game, and the 10th anniversary event of "Honor of Kings" are expected to drive growth [1] Investment Outlook - UBS maintains Tencent as a top industry pick, raising the target price from HKD 710 to HKD 720 and reiterating a "Buy" rating [1] - Earnings per share forecasts for 2025 to 2027 have been increased by 3% to 4% [1] Capital Expenditure - Capital expenditure decreased by 30% quarter-on-quarter in Q2 [1] - UBS views this reduction as a short-term impact due to GPU import restrictions, with management indicating a continued diversified chip strategy and efficiency improvements [1]

Core Viewpoint - UBS reports that Tencent's Q2 performance significantly exceeded expectations, with a year-on-year revenue growth of 15%, surpassing market expectations by 3% [1] Group 1: Financial Performance - Revenue increased by 15% year-on-year, exceeding market expectations by 3% [1] - Adjusted operating profit rose by 18% year-on-year, surpassing expectations by 5%, primarily due to margin expansion [1] Group 2: Business Segments - Strong performance in online gaming and advertising is expected to provide revenue visibility for the second half of the year [1] - Upcoming launches such as "Delta Action" PC version, "Valorant" mobile game, and the 10th anniversary event of "Honor of Kings" are anticipated to drive growth [1] Group 3: Capital Expenditure and Strategy - Q2 capital expenditure decreased by 30% quarter-on-quarter, attributed to short-term impacts from GPU import restrictions [1] - Management plans to continue a diversified chip strategy and improve efficiency [1] Group 4: Analyst Ratings and Forecasts - UBS reaffirms Tencent as a top industry pick, raising the target price from HKD 710 to HKD 720 [1] - Earnings per share forecasts for 2025 to 2027 have been increased by 3% to 4% [1]

Core Viewpoint - UBS reports that Tencent's Q2 performance significantly exceeded expectations, with a 15% year-on-year revenue growth, surpassing market expectations by 3% [1] - Adjusted operating profit increased by 18% year-on-year, exceeding expectations by 5%, primarily due to margin expansion [1] Group 1: Financial Performance - Online gaming and advertising businesses showed strong performance, providing visibility for revenue in the second half of the year [1] - Capital expenditure decreased by 30% quarter-on-quarter, attributed to short-term impacts from GPU import restrictions [1] Group 2: Future Outlook - UBS anticipates that the launches of "Delta Action" PC version, "Valorant" mobile game, and the 10th anniversary event of "Honor of Kings" will drive growth in the second half [1] - The firm maintains a positive outlook on AI monetization and capital expenditure strategies [1] Group 3: Investment Rating - UBS reaffirms Tencent as the industry preference, raising the target price from HKD 710 to HKD 720, while maintaining a "Buy" rating [1] - Earnings per share forecasts for 2025 to 2027 have been increased by 3% to 4% [1]