Core Viewpoint - Tencent's Q2 performance showed a revenue increase of 14.5%, exceeding consensus expectations by 3% [1] Revenue Growth - Revenue from value-added services, advertising, and fintech increased by 16%, 20%, and 10% year-on-year, respectively [1] - Q2 gaming revenue accelerated, with "Delta Action" becoming a leading evergreen game [2] - Mini-games revenue grew by 20% in Q2, with "Honor of Kings" and "Peacekeeper Elite" seeing revenue increases of 36% and 27% in July [2] Profitability - Adjusted net profit attributable to shareholders increased by 10%, surpassing expectations by 3%, with a 22% increase when excluding the impact of joint ventures [1] - Gross margins improved for value-added services, advertising, and fintech by 3.4, 1.9, and 4.5 percentage points, respectively [1][3] Advertising and E-commerce - Advertising revenue grew by 20% in Q2, exceeding expectations by 2%, with video accounts and mini-programs seeing revenue increases of 50% each [2] - The management indicated that AI-driven improvements in eCPM and click-through rates are contributing to advertising growth [2] Financial Technology and Cloud Business - Fintech revenue grew by 10% year-on-year, with significant growth in consumer loans, wealth management, and payment services [3] - The cloud business is expected to expand, with management focusing on AI demand and cost efficiency [3] Future Outlook - Revenue forecasts for 2025-2027 have been raised by 2.7%, 4.7%, and 4.8%, driven by the continued growth of WeChat mini-programs [4] - The target price has been adjusted to HKD 742.19, reflecting a 24.3x PE valuation for 2025 [4]