WorkBuddy最新用户增长势头强劲核心观察

Tencent Holdings (0700.HK)QuickThoughtsOnLatestRampMomentumofWorkBuddy As noted byseveralnews reports dated July6th citing latestdataby Analysys,Tencent'sWorkBuddycross-platformMAUhasreached2OmnwithDAUsurpassing13mn,implyingDAU/MAUratioof65-75%,whichweviewasahighDAU/MAUratio,especiallyconsideringtheproductwaslaunchedonlyafewmonthsago,indicatingstronguserstickinessandstrong dailyengagement.Indeed,during the1Q26earnings call,managementcommentedWorkBuddyhasan80%retentionrateandhasattractedahighpayingwillingnessfrom itspowerusers.WhileWorkBuddyisoneofmanyimportantAlagentproducts,itssuccesshighlightsthestrengthofTencent'secosystem,thesynergybetweenitsvariousproductivityenvironmentsandmoreimportantly,theusertrust inTencent's products and security,in ourview.Wemaintain our BuyratingonTencentandourTargetPriceofHK$763. +852-2501-2773alicia.yap@citi.com What's new?On July6,several news reports including ChooseAland Gelonghuireported that per latest data tracked by Analysys,Tencent WorkBuddy's cross-platformMAUhavereached20mn,whileDAUexceeded13mn,suggestingtheDAU/MAUratioisbetween65%and75%.The reportalsohighlightedthatbasedonreached8.85mn(up72.2%month-over-month),as ofMay,2.6xhigherthanthe2nd-place competitor.During earlier beta in March, Analysys'report suggested that themonth-over-monthgrowthratewas831%,withactiveuserscale3-4xhigherthanthe2nd-rankedproductintheindustry. Comment during1Q26 earningscall-Tencent management commented duringthe1Q26earningscallthatitbelievesTencentalreadyleadsinagenticAldeployment,measured byDAUforWorkBuddyvs competing products in China.In terms ofadoption metrics,management sawstrongtraction atearly stagewithCodeBuddyand WorkBuddy showing strong organic growth and high retention(60%+/80%+retention rate among activeusers andpayingusers).Early adopters showhightimespentandfrequentinteractionwithAlagents,whichcreatesavirtuousfeedbackloopforTencent.During a Citi hosted InvestorWebinar,managementalsonotedthatwithhigher paying willingness of WorkBuddy by high-powerusers,mgmt expects AlproductstobecomeakeyrevsgeneratorforTencent Cloudandexpecttoken-relatedrevstobecomeincreasinglysubstantialin2026ridingontherampofWorkBuddyandCodeBuddyadoption.Specifically,withWorkBuddyleadinginagenticAldeployment,measuredbyDAU,mgmtbelieveshigh-powerusersoftheproductwill resultinhigherpaying ratio than typical consumer subscription service like music,video or evengaming,leadingtohigh-qualitytoken-basedrevenuesforthethecompany QMcallalsosuggestedrobusttrafficofWorkBuddy-Duringourrecentcall withQuestmobile,theexpertalsoobservedarobusttrafficramponPCAlGCtoolssuchasWorkBuddy given higher productivity demand under the agentic Al era,suggestingcontinued traffic transition from traditional gateways like search engine and social 06July2026 Tencent HoldingsValuation OurtargetpriceofHK$763isbasedonaSOTPapproach,whichimplies23.0x2026Eand~21.7x2027EP/E.OurSOTPisbased onthefollowing:1)Onlinegames-Weapplya12xP/Etoour2027estimatedgamesnetprofitofRmb134bnandyieldavaluationofHKs194pershare,or25%ofourtargetprice;2)Onlineadvertising-Weapplya20xP/Etoour2027estimatedadsprofitofRmb84bnwhichyieldsa valuationof HK$202pershare,or26%ofourtargetprice;3)Social network-Whileweattributetheapply a 25x P/E to the estimated profit of Rmb62bn and yield a valuation of HKs187 per share, or 24% of our target price; 4)Fintech-Weapplya15xP/Etoourestimatedprofitof Rmb49bnandyieldavaluationofHK$88pershare,or12%ofourtargetprice; 5)Cloud/business services-Weapplya5xP/s(averageof China peers)toour 2027estimatedBusiness services revs ofRmb70bn,which yields a valuation of HK$42per share,or 6%of our target price; 6)Investment portfolio-We applya 30%discounttotheequitystakeinthepubliclylisted investmentportfoliowhichimpliesHks51/share.Risks slowdown in core PC games; i)unsuccessful launches of new mobile games; ili) a decline of Honor of Kings ranking andtheregulatoryenvironment. of the graphics in this document, please call USA 1-888-500-5008 (TTY: 711), from outside theUS+1-210-677-3788 Appendix A-1 Theresearchanalystsprimarilyresponsibleforthepreparationandcontentofthisresearchreportareeither(i)designated by"Ac"intheauthorblock or(ii)listed inboldalongsidecontentwhichis attributabletothatanalyst.IfmultipleACanalystsaredesignatedintheauthorblock,eachanalystiscertifyingwithrespecttotheentireresearchreportotherthan(a)contentattributabletoanotherACcertifyinganalystlistedinboldalongsidethecontentand(b)viewsexpressedsolelywithrespecttoaspecificissuerwhichareattributabletoanotherACcertifyinganalystidentified inthepricecharts orratinghistorytablesforthatissuershownbelow.Eachoftheseanalystscertify,withrespecttothesectionsofthereportforwhichtheyareresponsible:(1)thattheviews expressedthereinaccuratelyreflecttheirpersonalviewsabouteachissuerandsecurityreferencedandwereprepared inanindependentmanner,includingwithrespecttoCitigroup GlobalMarketsInc.and its affiliates;and (2)nopartoftheresearchanalyst'scompensationwas,is,orwill be,directlyorindirectly,rela