$TENCENT(00700)$ Headline: Why-To The Moon - Tiger Brokers Online Investing Community - To The Moon

$TENCENT(00700)$

Headline: Why Tencent’s "Revenue Miss" is Actually a Major Win 🚀

Don't let the headline "Revenue Miss" fool you. The real story in Tencent's Q1 earnings is the gross margin expansion (56% to 57%) and the 11% jump in adjusted net profit.

Here is why this is a massive green flag:

• Operating Leverage in Action: Profit growth (+11%) is outpacing revenue growth (+9%). This means Tencent is becoming highly efficient, extracting more profit out of every dollar earned.

• The AI Myth-Busted: Bears argued that massive AI hardware costs would destroy big tech margins. Tencent just proved them wrong—their high-margin business mix (likely ad tech and cloud optimizations) fully offset rising depreciation costs.

• The Verdict: Efficiency beats raw topline growth in this market. I expect margin expansion to dominate the narrative and push the stock higher.

What are your thoughts? Are you buying the dip or waiting for revenue to catch up?

#Tencent #00700 #Earnings Analysis

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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