Investment Rating - The investment rating for Tencent Holdings is "Outperform the Market" (maintained) [2][8][23] Core Views - Tencent is expected to achieve revenue of CNY 194.6 billion in Q4 2025, representing a year-on-year growth of 13%. The network advertising sector is anticipated to perform steadily, benefiting from the release of advertising inventory and AI integration. The gaming business is expected to show strong performance, particularly with the game "Delta Operation" [4][9] - The company is increasing its investment in AI, which is expected to offset some operational leverage release. The AI investment will primarily manifest in R&D expenses, projected to grow by 28% in Q4 2025 [4][10] - The gaming segment is projected to generate revenue of CNY 58 billion in Q4 2025, with a year-on-year growth of 18%. Domestic game revenue is expected to grow by 16%, supported by established titles like "Honor of Kings" and "Peacekeeper Elite" [5][15][21] - Marketing services revenue is expected to reach CNY 41.3 billion in Q4 2025, reflecting an 18% year-on-year increase, driven by AI enhancements in advertising efficiency [6][19] - Financial technology and enterprise services are projected to grow by 9% year-on-year, with revenue expected to reach CNY 61.2 billion in Q4 2025, primarily driven by payment services [20] Summary by Relevant Sections Financial Performance - Q4 2025 revenue is expected to be CNY 194.6 billion, with a 13% year-on-year increase. Non-IFRS operating profit is projected at CNY 68.1 billion, up 15% year-on-year, and net profit is expected to be CNY 65.2 billion, reflecting an 18% increase [4][10][11] - The expected Non-IFRS net profit margin is 34% for Q4 2025 [10] Gaming Business - The gaming revenue forecast for Q4 2025 is CNY 58 billion, with an 18% year-on-year growth. Domestic game revenue is expected to grow by 16%, while overseas game revenue is projected to increase by 22% [5][21] Marketing Services - Marketing services revenue is anticipated to be CNY 41.3 billion in Q4 2025, marking an 18% year-on-year growth. AI-driven enhancements are expected to improve advertising efficiency significantly [6][19] Financial Technology and Enterprise Services - Revenue from financial technology and enterprise services is expected to reach CNY 61.2 billion in Q4 2025, with a 9% year-on-year growth, primarily driven by payment services [20]

Group 1 - Zero One Everything launched "Wanzhi 2.5 Enterprise Multi-Agent," showcasing advancements in enterprise AI transformation and demonstrating how multi-agents can streamline complex workflows previously requiring large teams [1] - The launch includes insights from industry experts and showcases practical applications like "Alternative Marketing Department" and "Alternative HR" [1] Group 2 - ByteDance's "Doubao" AI glasses are set to enter the shipping phase, developed in collaboration with Longqi Technology [2] - Zhiyuan Robotics partnered with MiniMax to enhance voice interaction capabilities in their robots, offering personalized voice synthesis and expanding entertainment applications [3] Group 3 - Tencent initiated an "AI Application and Online Tools Mini Program Growth Plan," providing comprehensive support including cloud development resources and AI computing power from January 1, 2026, to December 31, 2026 [4] - Tencent's AI workbench, ima, introduced a "Generate PPT" feature, allowing users to create slides using personal knowledge bases [5] Group 4 - NetEase Youdao upgraded its AI learning hardware "Youdao AI Answer Pen Space X" to include the first domestic AI "video Q&A" feature, transitioning from static text to dynamic video explanations [6] Group 5 - Alibaba's Amap achieved top scores in the WorldScore evaluation, indicating significant advancements in AI technology for understanding and simulating real-world dynamics, with plans to launch new applications benefiting local businesses [7]