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Tencent: Our Perspectives and Insights on Recent NDRs

FUNDA·2025年3月24日

WeChat's data moat + Yuanbao AI set Tencent to lift ad load (~4% vs ~15%), driving monetization upside.

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Over the past two weeks, I've been primarily conducting research in the Bay Area, meeting with numerous industry friends to understand the current state of AI in M7 and various startups. I'll be compiling my findings into an in-depth article to share with everyone. As a result, I've fallen behind by two weeks, but we're now back to high-frequency updates!!!

Unlike the previous three months, starting from this week, we'll also be providing extensive updates on Chinese stocks. Wall Street's interest in Chinese stocks has been increasing exponentially as of late. This includes the launch of a series featuring Deepseek's in-depth research report on Chinese cloud vendors, which we'll begin this week. Next week, we'll start a series on how LLM and GPUs are impacting the Chinese advertising industry. The following week, we'll commence a series on how LLM is influencing Chinese FinTech companies.

If any of my friends have recently been considering a research trip to China, feel free to reach out to me. Since I lived in Hong Kong for many years, I can help introduce you to some Chinese funds for a chat.

In addition to these updates, this week, we'll also begin sharing our latest research on U.S. advertisers and Applovin. So, let's start with an appetizer and continue to follow up on Tencent, which we've written about before, and discuss how Tencent's management views AI.

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