TENCENT(00700) 国信证券·2024-05-31 10:02Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [1][2]. Core Insights - The launch of Tencent's C-end APP "Tencent Yuanbao," based on the mixed Yuan model, aims to enhance user efficiency in information retrieval, processing, and production, featuring AI search, AI summarization, and AI writing capabilities [2][3]. - Tencent Yuanbao integrates various Tencent business ecosystems, showcasing high-quality content accumulation from WeChat public accounts, with a daily usage of the mixed model reaching 200 million across over 600 Tencent business scenarios [3][27]. - The report maintains profit forecasts for Tencent, projecting adjusted net profits of 200.2 billion, 225.6 billion, and 250.9 billion for 2024, 2025, and 2026 respectively, while continuing to support the "Outperform the Market" rating [27]. Summary by Sections Product Features - Tencent Yuanbao focuses on efficiency and entertainment, offering features like AI search, AI summarization, and AI writing, along with creative drawing and avatar generation [4][11]. - The AI search function provides concise answers to user queries, ensuring high timeliness and accuracy by integrating with WeChat search and Sogou search [4][10]. - The AI summarization feature delivers content that closely aligns with user inquiries, outperforming competitors in quality [6][24]. Business Integration - The design of Yuanbao reflects Tencent's comprehensive content ecosystem, allowing users to access WeChat public account articles directly from search results [3][24]. - The internal usage of the mixed model across Tencent's products indicates a strategic push towards enhancing user experience and product capabilities [3][27]. Financial Projections - The report forecasts Tencent's adjusted net profits to grow from 200.2 billion in 2024 to 250.9 billion in 2026, indicating a positive outlook for the company's financial performance [27][31].