Core Insights - Tencent reported strong financial results for 2Q25, with total revenue and non-IFRS operating income increasing by 15% and 18% year-on-year to RMB184.5 billion and RMB69.2 billion respectively, surpassing Bloomberg consensus estimates by 3% and 4% [1] Group 1: Gaming Performance - Games revenue grew by 22% year-on-year to RMB59.2 billion in 2Q25, exceeding consensus estimates by 5% [3] - Domestic games revenue increased by 17% year-on-year to RMB40.4 billion, driven by the success of Delta Force and evergreen games, with Delta Force achieving over 20 million average daily active users [3] - International games revenue rose by 35% year-on-year to RMB18.8 billion, supported by Supercell's games, PUBG Mobile, and the launch of Dune: Awakening [3] Group 2: Marketing Services - Marketing services revenue increased by 20% year-on-year to RMB35.8 billion in 2Q25, 2% ahead of consensus estimates, primarily due to AI enhancements and the Weixin transaction ecosystem [4] - Revenue from Video Accounts, Mini Programs, and Weixin Search grew approximately 50%, 50%, and 60% year-on-year respectively [4] - The company is optimistic about the marketing business's growth potential, driven by AI-enhanced ad conversion and increased ad load [4] Group 3: Fintech and Business Services - Fintech and Business Services (FBS) revenue grew by 10% year-on-year to RMB55.5 billion in 2Q25, with fintech revenue accelerating to high-single-digit growth [5] - Business services revenue growth also accelerated to the teens percentage year-on-year, driven by AI cloud and e-commerce services [5] - Gross profit margin (GPM) for FBS expanded by 4.5 percentage points year-on-year to 52.1% due to a favorable revenue mix and improved efficiency [5] Group 4: Profitability and Investment - Non-IFRS operating profit margin (OPM) expanded by 1.3 percentage points year-on-year to 37.5% in 2Q25 [6] - Capital expenditures for 1H25 grew by 102% year-on-year to RMB46.6 billion, representing 13% of total revenue, with continued investments in AI infrastructure and marketing [6] - Despite increased investments and depreciation, non-IFRS net profit margin (NPM) is expected to rise by approximately 1 percentage point year-on-year in FY25 and FY26 due to operating leverage and AI empowerment [6]

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 2025 financial performance shows strong growth across multiple business segments, driven by gaming, advertising, and AI strategies, leading to a significant increase in revenue and profit margins [4][6]. Financial Performance - Q2 revenue reached 184.5 billion yuan, a year-on-year increase of 15% and a quarter-on-quarter increase of 2% [6]. - Non-IFRS operating profit was 69.25 billion yuan, up 18% year-on-year [6]. - Non-IFRS net profit stood at 63 billion yuan, reflecting a 10% year-on-year growth [6]. - Gross margin improved to 57%, an increase of 4 percentage points, benefiting from high-margin business optimization [6]. - Free cash flow amounted to 43 billion yuan, with capital expenditures of 19.1 billion yuan [6]. Business Highlights and Strategic Directions 1. **Gaming Business Recovery** - Domestic market: "Delta Action" achieved over 20 million daily active users, contributing to top revenue [7]. - International market: "PUBG Mobile" reached a record high monthly revenue, while "Clash Royale" saw a seven-year revenue peak with a fixed exchange rate growth of 33% [7]. 2. **Advertising Business Driven by AI** - Video account advertising surged by 50%, with AI optimization increasing click-through rates (CTR) to 3% [8]. - WeChat search revenue grew by 60%, aided by large model optimization for product intent understanding [8]. 3. **Steady Growth in Financial Technology and Enterprise Services** - Growth in enterprise services accelerated due to GPU leasing and API calls, with Tencent Cloud being recognized as a global leader in CPaaS for three consecutive years by Gartner [9]. 4. **Accelerated Investment in AI Strategy** - R&D expenses reached 20.25 billion yuan, a year-on-year increase of 17%, with the "Hunyuan" large model ranking first in 3D generation capabilities on HuggingFace [10]. - Capital expenditures are projected to be between 80 to 100 billion yuan in 2025, accounting for 10% to 15% of revenue [10]. 5. **WeChat Ecosystem AI Upgrade** - Monthly active users reached 1.411 billion, a year-on-year increase of 3%, with new AI customer service and video account interpretation features [11]. Management Key Statements - CEO Ma Huateng emphasized the core focus on the "Hunyuan" large model and AI applications, with ongoing investments planned [12]. - President Liu Chiping highlighted prioritizing high-return areas for AI investments, noting that some GPU leasing has already contributed to revenue [12]. - CFO Luo Shuhan discussed cost control measures, stating that free cash flow covers capital expenditures [12].

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]

腾讯方面，其搜索业务日活跃用户保持增长，微信搜索带来新广告收入及用户意图洞察，小程序及小商 店发展推动闭环生态。AI广告技术升级提升匹配精准度及用户黏性，增值服务广告载量预计年底达 4.5%至5%，长期增长空间稳健。 推荐股份方面，该行的行业首选仍然是腾讯(核心推荐)，并认为快手和哔哩哔哩在后续表现中相对优 势，腾讯尤具多重长期增长动能，因为预计其将凭借搜索、小程序及增值服务、广告技术的提升，以及 搜索与闭环生态系统的进一步发展令其表现可优于同业。 瑞银料中国今年广告市场同比升10.2%，线上广告同比升10.7%，料腾讯今年广告同比增长17%，估阿里 巴巴及字节跳动讯今年广告同比各升6.3%及14.4%、料快手今年广告同比增长14%，估哔哩哔哩今年广 告同比增18.2%。 智通财经APP获悉，瑞银发布研报称，据最新中国市场第二季及后续广告动向的讯息，内地整体广告市 场表现较预期稍微疲弱，但AI相关的广告利益逐渐显现。中国线上广告在第二季料同比增长约12%，虽 然高于整体消费增速，但低于行业专家先前预期，主要因贸易不确定性影响商户对广告投放的信心。第 三季预期增长进一步放缓至约8%，原因包括基数高、快消电商补贴 ...

Core Insights - The article discusses the recruitment strategy of WeChat, highlighting its focus on AI and the implications for its business model and growth potential [2][12]. Group 1: Recruitment Data Analysis - WeChat has 170 job openings available for public viewing, which can be filtered by various criteria such as business group and job type [4][5][6]. - The recruitment data reveals that WeChat is actively hiring across multiple departments, with a significant number of positions related to AI and machine learning [30][31][56]. - The majority of job openings are located in Guangzhou, followed by Beijing, Shenzhen, and Chengdu, reflecting the strategic importance of these locations for talent acquisition [22][24]. Group 2: AI Integration - Approximately 50 job positions are directly related to AI, with an additional 30 in broader AI-related fields, indicating a comprehensive approach to AI integration across WeChat's services [30][31]. - WeChat is not only focusing on large models but is also developing smaller models for deployment on client-side applications, showcasing a dual approach to AI [46][47]. - The recruitment data suggests that WeChat is building its own foundational models, which may involve complex training processes, rather than solely relying on existing large models [34][41]. Group 3: Business Lines and Growth Strategy - The recruitment focus on enterprise WeChat, which has the highest number of job openings, indicates a strategic push to enhance its capabilities in this area [55][60]. - WeChat's small store initiative is also highlighted, with a significant number of positions aimed at product planning and operations, reflecting its ambition in the e-commerce space [72][73]. - The search function within WeChat is being prioritized, with 27 job openings specifically for technical roles, emphasizing the importance of technology in enhancing search capabilities [100][102]. Group 4: Overall Implications - The extensive recruitment across various departments suggests that WeChat is preparing for significant growth and transformation, particularly in AI and e-commerce [60][64]. - The focus on detailed job descriptions and requirements indicates a desire to reduce information asymmetry between the company and potential candidates, which may enhance recruitment efficiency [11][12]. - The strategic emphasis on AI and e-commerce positions WeChat to compete more effectively against rivals in the digital landscape, particularly in areas like enterprise solutions and online retail [64][95].

除了构建新的AI产品矩阵，随着DeepSeek等开源大模型的普及，腾讯系列产品是最早一批拥抱DeepSeek的产品，元 宝、ima、QQ浏览器、腾讯文档、腾讯地图、QQ音乐等，均宣布同时支持混元大模型与DeepSeek模型"双引擎"，微 信搜索也上线了"AI搜索"功能并接入DeepSeek-R1。这显示出腾讯正积极推进"核心技术自研+拥抱先进开源"的多模 型策略。 如果说此前一轮组织架构调整主要围绕产品侧，那么本次的调整则主要针对技术侧，旨在增强腾讯混元大模型的研 发实力。腾讯相关人士表示，这意味着腾讯在快速调整组织架构以应对日新月异的大模型行业发展，这次调整有利 于整合资源，优化研发流程，进一步提升腾讯在AI领域的长期技术作战能力。 AI的竞争日渐激烈，腾讯在大模型领域的战略和部署正在持续进化。 4月29日，证券时报记者从腾讯获悉，腾讯对其混元大模型研发体系进行了全面重构，围绕算力、算法和数据三大核 心板块，刷新团队部署，加码研发投入。 具体来看，腾讯新成立了两个部门，分别是大语言模型部和多模态模型部，负责探索大语言模型和多模态大模型的 前沿技术，持续迭代基础模型，提升模型能力。 此外，腾讯将进一步加强大模 ...