Group 1: Tencent Holdings (00700) Analysis - Tencent achieved a revenue of 184.5 billion yuan in Q2 2025, a year-on-year increase of 15%, exceeding Bloomberg consensus by 3% [2][14] - Adjusted net profit attributable to shareholders was 63.1 billion yuan, up 10% year-on-year, also surpassing Bloomberg consensus by 2% [2][14] - The gaming segment showed strong performance, with international and domestic game revenues growing by 35% and 17% respectively in Q2 2025 [2][14] - Advertising revenue increased by 20% to 35.8 billion yuan, driven by AI enhancements that improved click-through rates [2][14] - Financial technology and enterprise services revenue grew by 10% to 55.5 billion yuan, marking a return to double-digit growth [3][14] - The company maintains a "buy" rating with an adjusted net profit forecast for 2025-2027 of 255.6 billion, 298 billion, and 336.8 billion yuan respectively [3][14] Group 2: Industry Trends and Insights - The wind power sector is experiencing a high growth period, with significant improvements in profitability reported by various companies [25] - The domestic wind power market is expected to see new installations reach 110 GW in 2025, with Q2 2025 showing a year-on-year increase of 255.61% in new installations [25] - The market for non-road wide-body dump trucks is projected to grow significantly, driven by trends towards larger, electric, and unmanned vehicles [15][18] - The liquid cooling technology for data centers is gaining traction, with a projected market space of approximately 10 billion yuan due to increasing power density and cooling needs [28][26] - The semiconductor industry is seeing a shift towards special integrated circuits, with demand driven by national defense and commercial satellite applications [21][29]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The gaming industry is experiencing high prosperity, with user sentiment and consumption demand resonating with game supply release. In Q1 2025, China's gaming market size reached 85.704 billion yuan, a year-on-year increase of 17.99%. In April 2025, the market size was 27.351 billion yuan, showing a year-on-year growth of 21.93% and a month-on-month increase of 2.47% [4] - The trend of "self-consumption" is driving rapid growth in demand for genres such as ACG (Anime, Comic, Game), party games, and female-oriented games. The number of game licenses issued in 2024 was 1,416, a year-on-year increase of 32%, with an average of 118 licenses issued monthly [4] - New games launched in 2025 have shown impressive performance, providing related companies with earnings elasticity. For instance, "Kingshot" from Century Huatong achieved a revenue of over 75 million USD within three months of its launch [5] - The Zhejiang provincial government has introduced measures to support the internationalization of the gaming industry, which is expected to enhance the global competitiveness of domestic gaming products and drive overall industry growth [5] Summary by Sections Market Performance - In Q1 2025, the gaming market size was 85.704 billion yuan, with a year-on-year growth of 17.99% [4] - In April 2025, the market size was 27.351 billion yuan, reflecting a year-on-year increase of 21.93% and a month-on-month growth of 2.47% [4] Game Supply and Demand - The number of game licenses issued in 2024 was 1,416, a 32% increase year-on-year, with an average of 118 licenses issued monthly [4] - The demand for genres such as ACG, party games, and female-oriented games is rapidly increasing due to the "self-consumption" trend [4] New Game Launches - New games like "暴吵萌厨" and "伊瑟" have performed well, maintaining high rankings in the iOS game charts [5] - "Kingshot" from Century Huatong achieved a revenue of over 75 million USD within three months of its launch, indicating strong market performance [5] Policy Support - The Zhejiang provincial government has issued measures to support the gaming industry's internationalization, which is expected to enhance competitiveness and drive growth [5]

Investment Rating - The report assigns a "Buy" rating for stocks, indicating an expected relative return of over 20% within six months [40] Core Insights - The Hong Kong stock market has seen a net inflow of southbound funds amounting to 141.6 billion CNY over the past week, with a total net inflow of 6244.2 billion CNY year-to-date, representing 83.9% of the total net inflow for 2024 [1] - Major internet companies are currently valued at relatively low price-to-earnings (PE) ratios, with Meituan at 17, Tencent at 16, and Alibaba at 12 for the year 2025 [1] - The AI sector is witnessing significant advancements, with the launch of upgraded models and new applications, indicating a positive trend in commercializing AI technologies [1][19] Summary by Sections Southbound Funds - The report highlights a strong focus on Meituan, which received a net purchase of 56.75 billion CNY from southbound funds [1][35] - Other notable stocks with significant net purchases include BYD with 29.79 billion CNY and China Construction Bank with 22.05 billion CNY [35] AI Developments - The report discusses the advancements in AI, particularly the upgrade of the Doubao model to version 1.6, which shows significant improvements in reasoning and instruction-following capabilities [19] - The introduction of new models for video generation and podcasting further emphasizes the ongoing innovation in the AI sector [19] Online Music and IP Market - Tencent Music's acquisition of the online audio platform Ximalaya is expected to enhance its long audio content strategy [3] - The report notes the high demand for IP-related stocks, particularly in the collectible toy sector, with companies like Pop Mart and Blukoo being highlighted as key players [2] Automotive Sector - The report indicates a positive outlook for smart driving technologies, with Tesla's Robotaxi set to begin operations and domestic players like Li Auto and Xpeng reaching critical milestones [2] - The trend of equipping vehicles with laser radar is becoming standard among leading manufacturers, suggesting a robust future for companies like Hesai Technology and Horizon Robotics [2][12] Valuation Comparisons - The report provides a comparative analysis of major companies' market capitalizations and PE ratios, with Alibaba at 20374 million CNY and a PE of 12, while Tencent stands at 43340 million CNY with a PE of 16 [30] - The automotive companies Li Auto and Xpeng are noted for their low price-to-sales (PS) ratios, indicating potential undervaluation compared to their U.S. counterparts [32]

Investment Rating - The report assigns a "Buy" rating for stocks, indicating an expected relative return of over 20% within six months [33] Core Insights - Southbound funds continue to flow into Hong Kong stocks, with a net purchase of 13.681 billion yuan during the week, totaling 624.42 billion yuan year-to-date, which is 83.92% of the total net purchase for 2024 [1] - Major internet companies are currently at relatively low valuations, with projected P/E ratios for 2025 as follows: Xiaomi (27), Tencent (16), Alibaba (12), Meituan (17), Baidu (9), Pinduoduo (10), JD.com (7), and Kuaishou (11) [1] - Kuaishou's AI product, Keling AI, has achieved an annualized revenue run rate exceeding 100 million USD within ten months of launch, with a user base surpassing 22 million globally [1] Summary by Sections Southbound Funds - Southbound funds have shown a strong inflow, with Meituan receiving the highest net purchase of 8.613 billion yuan [28] - The overall trend indicates a growing interest in Hong Kong stocks, particularly in the IP economy and consumer recovery sectors [2] AI and Technology - The report highlights the upcoming launch of advanced driving technologies from companies like Tesla and Xiaopeng, with a focus on laser radar and chip suppliers [2] - Kuaishou's AI product is noted for its rapid revenue growth and user acquisition, indicating strong commercial potential in AI applications [1] Consumer and IP Economy - The report emphasizes the high growth potential in the IP economy, with companies like Pop Mart and Blukoo being highlighted for their strong market positions and product offerings [2] - The upcoming IPOs and seasonal consumption trends are expected to drive market expectations higher [2] Market Overview - The Hang Seng Index closed at 23,792.54 points, reflecting a weekly increase of approximately 2.16% [14] - The report suggests that the current market conditions are favorable for investment in high-growth sectors, particularly in consumer and technology [2]

Investment Rating - The report assigns a "Buy" rating for stocks, indicating an expected relative return of over 20% within the next six months [27] Core Insights - Southbound capital continues to flow into Hong Kong, with a net purchase of 25.8 billion yuan during the week, totaling 610.7 billion yuan year-to-date, which is 82% of the total net purchase for 2024 [1] - The Hong Kong Stablecoin Ordinance was officially enacted, marking a significant step for Hong Kong in the digital asset space [3][7] - The report highlights the potential of the IP economy and consumer recovery, suggesting structural opportunities in the upcoming IPOs and summer consumption peak [2] Summary by Sections Southbound Capital - Southbound funds have shown strong interest in Meituan, with a net purchase of 9.467 billion yuan [22] - The report notes that major indices in Hong Kong are set for significant adjustments, with companies like Bluko and Mijiu Group being added to the Hang Seng Composite Index [3] AI and Technology - The report emphasizes the advancements in AI applications, particularly with the release of Keling 2.1, which shows improved performance and cost-effectiveness [1] - The smart driving sector is expected to see a turning point with the launch of Tesla's robotaxi and new models from Li Auto and Xpeng [2] Company Performance - Meituan reported Q1 2025 revenue of 86.6 billion yuan, up 18.1% year-on-year, with adjusted net profit increasing by 46.2% [8] - Xiaomi's Q1 2025 revenue reached 111.3 billion yuan, a 47.4% increase, driven by strong performance in its electric vehicle and AI sectors [9] - The report highlights the strong fundamentals of Tencent, with a projected PE of 17X for 2025, and the potential of its gaming and AI products [3] Market Trends - The report indicates that the current valuation of internet companies is relatively low, with projected PE ratios for major players like Alibaba at 12 and Tencent at 17 [1][20] - The report suggests that the IP economy sector is experiencing high growth and strong catalysts, recommending attention to companies like Pop Mart and Bilibili [2][3]

海外行业报告 | 行业动态研究 港股周报（2025.05.26-2025.05.30） 证券研究报告 南下资金持续流入，香港稳定币法案落地 本周港股恒生指数、恒生中国企业指数收涨和恒生科技指数收跌。本周港股通 5 个交易日共净买入 258 亿元，年初至今净买入 6107 亿元，相当于 2024 年全年净买入 7440.31 亿元的 82%。南向资金重点加仓美团（94.6 亿）。当前互联网公司处于估值相对低位， 小 米、腾讯、阿里巴巴、美团、百度、拼多多、京东、快手 25 年（阿里巴巴为 FY26）PE 分别为 29/ 17/ 12/ 14/ 8/ 9/ 7/ 9。 AI 方面，可灵 2.1 发布，性能和性价比进一步提高。可灵 2.1 在视频生成效果上表现出色，特别是在运动表现和模型质量方面，同时 价格和原来版本保持一致。我们继续看好模型迭代的性能提升以及性价比提升下 AI 在应用侧的商业化进展。 智能驾驶方面，近期将迎来 tesla robotaxi 和理想小鹏 vla/华为 ads4.0 落地拐点。新车发布周期有望驱动市场预期升温 ，持续看好头 部主机厂【小鹏汽车】【小米集团】【理想汽车】。目前主流主机厂标 ...

Investment Rating - The industry investment rating is "Strong Outperform" with an expected industry index increase of over 5% in the next six months [29] Core Insights - The report highlights that internet companies have shown strong performance in Q1 2025, driven by AI technology enhancing business operations and expected to boost earnings growth [1] - Key companies such as Tencent and Alibaba are leveraging AI capabilities to improve their advertising platforms and product offerings, with Alibaba's AI products experiencing triple-digit growth for seven consecutive quarters [1][6] - The report suggests a focus on companies with strong fundamentals and growth potential, including Tencent, Alibaba, JD.com, and Xiaomi, with specific PE ratios indicating relative valuation attractiveness [1][19] Summary by Sections Internet Sector - The Hong Kong stock market indices rose, with significant net buying from southbound funds, particularly in major banks and internet companies [1] - Internet companies are currently valued at relatively low PE ratios, with Alibaba at 12, Tencent at 17, and JD.com at 7 for 2025 [1][19] AI and Technology - AI is becoming a critical driver for revenue growth in major companies, with Tencent's Q1 2025 revenue up 13% year-on-year, and Alibaba's cloud business growing 18% [5][6] - The report emphasizes the importance of AI product advancements and their impact on market expectations and valuations [2] New Listings and Market Trends - The upcoming IPO of CATL is noted, with 90% of the proceeds aimed at advancing projects in Hungary [2] - The report anticipates significant earnings reports from key companies like Bilibili and Baidu, which could further influence market sentiment [2] Company Performance - Tencent's Q1 2025 results exceeded expectations, with a notable increase in revenue and profit margins driven by gaming and advertising [5] - Alibaba's Q4 FY25 results showed a 7% revenue growth, with significant contributions from its cloud and CMR businesses [6] - JD.com reported a strong Q1 2025 performance with revenues surpassing 300 billion yuan, driven by its expanding delivery ecosystem and promotional strategies [8][9]

海外行业报告 | 行业动态研究 港股周报（2025.05.06-2025.05.09） 证券研究报告 南向资金加码美团等低估值龙头，关注港股龙头公司 下周财报披露 本周港股三大指数上涨，本周港股通 4 个交易日共净买入 67.716 亿元，年初至今净买入 5755.18 亿元，相当于 2024 年全年净买入 7440.3081 亿元的 77.35%；南向资金重点加仓美团（63.71 亿）等。当前互联网公司处于估值相对低位，小米、腾讯、阿里巴巴、美团、百度、拼多多、京东、 快手 25 年（阿里巴巴为 FY26）PE 分别为 28/ 17/ 12/ 11/ 9/ 8/ 7/ 6。 AI 方面，5 月 8 日星动纪元宣布开源首个 AIGC 生成式机器人大模型 VPP（Video Prediction Policy）。该模型由清华大学交叉信息学院的 ISRLab 和星动纪元共同研发。与之前机器人大模型 普遍都是基于 VLM（Vision-Language Model）模型的 VLA 模型（Vision-Language-Action Model）不同，VPP 则是基于类似 Sora 这样的 AIGC 生成式模型，它在 ...

Core Viewpoint - Tencent showcased 46 products at the SPARK 2025 game launch event, highlighting its comprehensive capabilities in research, development, and investment in the gaming sector [3][4]. Group 1: Game Investment and Market Trends - Tencent's separate display of its game investment segment indicates significant achievements in overseas investments, with a clear development strategy for IP and PC games. In Q1 2025, China's self-developed games achieved actual sales of $4.805 billion in overseas markets, reflecting a year-on-year growth of 17.9%. The domestic mobile game market is expected to maintain a global market share of 37.5% in 2024, while the overseas market shows a high degree of consolidation, with PC games accounting for 51% of the market [4]. - Tencent's investment in Ubisoft's subsidiary is expected to enhance its IP portfolio and improve its PC game development capabilities, thereby supporting long-term growth in its overseas gaming business [4]. Group 2: Game Development and Adaptation - The event highlighted Tencent's strong research and development capabilities, showcasing updates on popular mobile adaptations of established PC game IPs, such as "Call of Duty Mobile" and "Valorant: Source Action." This demonstrates Tencent's mature technical handling and industrial production experience in adapting PC games to mobile platforms [5]. - New game developments, including "Honor of Kings World" and "Wilderness Origin," indicate Tencent's expansion into new game genres beyond its traditional strengths [5]. Group 3: User Engagement and Market Position - Tencent's ability to attract quality developers for product distribution is supported by its extensive user base and social ecosystem. According to Quest Mobile data, Tencent's gaming user engagement accounted for 66.5% of the industry in 2024, leading in traffic [6]. - The upcoming release of "Victory Goddess: New Hope" in May is expected to contribute to user growth, while "Dungeon and Fighter: Kazan" is anticipated to enhance the value of the DNF IP [6]. Group 4: Product Release Strategy - The product release schedule is well-managed, with established games expected to drive growth in the first half of 2025, while new products are anticipated to alleviate high baseline pressure in the second half [6]. - Tencent's long-standing games, such as "Honor of Kings" and "Peacekeeper Elite," have shown strong performance, with a collaboration with the popular IP "Nezha" expected to boost game business in Q2 2025 [6].

Investment Rating - The industry investment rating is "Strongly Outperform the Market" with an expected industry index increase of over 5% in the next six months [29] Core Insights - The Hong Kong stock market showed a positive trend with the Hang Seng Index closing at 21,980.74 points, up approximately 2.74% during the week of April 21 to April 25, 2025 [11] - Significant net buying from southbound funds was observed, with Alibaba, Meituan, and Tencent being the top three stocks attracting investment [20] - The report highlights the low valuation of internet companies, with projected P/E ratios for 2025 indicating potential upside for stocks like Tencent, Pinduoduo, and Alibaba [4][19] Summary by Sections Internet Sector - Tencent's 2025 projected P/E is 16X, with strong fundamentals and new product launches expected [4] - Pinduoduo is recommended for attention after a recent pullback, currently valued at 8X P/E [4] - Alibaba's valuation is at 12X P/E for FY26, with expectations of continued growth in cloud services and e-commerce market stabilization [4] AI Sector - Baidu's AI Developer Conference introduced the Wenxin model 4.5Turbo, with input costs reduced by 80% compared to its predecessor [2][8] - The report anticipates continued growth in the intelligent driving sector, driven by major manufacturers and advancements in technology [2] New Consumption - Pop Mart reported a total revenue increase of 165%-170% year-on-year for Q1 2025, exceeding market expectations [5] - The introduction of new products is expected to maintain strong demand and upward trends for Pop Mart [5] New Listings - New companies like Hu Shang A Yi and Green Tea Restaurant are under observation following their approval for listing on the Hong Kong Stock Exchange [3]