Yongqing
05-19
$TENCENT(00700)$  Low PE Ratio, discounted stock at a steal
Tencent Accelerates AI Spending — Can China's Domestic Compute Chain Keep Pace?
Tencent Q2: revenue RMB 204.79bn (+11% YoY), adjusted net profit RMB 68.42bn (+9%); AI-driven ad efficiency lifted marketing services 22%, domestic gaming 17%. Capex RMB 52.78bn; FCF −RMB 13.8bn, or +37.6bn excluding compute prepayments. Despite solid fundamentals, shares fell 3.03% intraday in Hong Kong on growth versus spend. JD.com, SMIC, Hua Hong reported after hours; intraday SMIC +2.67%, Hua Hong +2.45%, JD +0.49%, compute names drawing inflows. Tencent's AI story, or SMIC/Hua Hong's compute chain?
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