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BLACK SESAME(2533)
Analysis：
Black Sesame primarily provides intelligent vehicle System-on-Chip (SoC) and SoC-based autonomous driving solutions in China, as well as intelligent imaging solutions. In the first half of 2025, the group deepened collaborations with leading clients such as Geely, BYD, Dongfeng, and FAW, achieving continuous deliveries and engineering R&D for assisted driving platforms while securing new domestic and international vehicle model designations, with overseas designations reaching a record high for the group. Additionally, the group has made significant progress in cross-scenario technology and business migration based on its existing assisted driving chips and solution platforms, achieving notable advancements in robotics and unmanned logistics vehicles, further enriching its commercial portfolio centered on assisted driving.
In the first half of 2025, with rapid business expansion and increased mass production deliveries, the group recorded revenue of 253 million RMB, a 40.4% increase compared to the same period in 2024. This year’s goal is to secure designations and mass production partnerships with leading automakers, promoting the adoption and expansion of high-compute intelligent driving chips and open, leading algorithm solutions. In robotics, the group is developing a “cerebellum” solution based on the C1200 series chips for robot motion control and a “brain” solution based on the A2000 chip for perception and computing functions in intelligent robots. The group has formed a strategic partnership with a leading bipedal robot company and, through investments in robotics firms, is co-developing multimodal perception computing modules for highly dynamic environments, advancing the ecosystem and business expansion of chips and embodied intelligence solutions. In unmanned logistics vehicles, the group, with ecosystem partners, has developed an L4 intelligent driving system based on its chips and proprietary laser-vision integrated sensors, enabling low-speed L4 functionality in closed scenarios like ports and industrial parks, with ongoing shipments.
Looking ahead, the group will actively pursue acquisitions of cost-effective, low-power AI chip companies to create deep synergies with its existing mid-to-high compute chip platforms. Leveraging years of accumulated assisted driving algorithm expertise, the group aims to provide a broader range of AI inference chip products and solutions for robotics and edge applications, positioning itself as a leader in the edge AI chip sector.(I do not hold the aforementioned stock.)
Strategy：
Buy-in Price: $19.80, Target Price: $22.00, Cut Loss Price: $18.80
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TRIP.COM-S(9961)
Analysis：
According to data from TravelSky Big Data, as of now, during this year's National Day holiday, domestic flight ticket bookings have exceeded 5.93 million, with the average daily bookings increasing by approximately 28% compared to the same period last year. International flight ticket bookings have surpassed 1.4 million, with the average daily bookings rising by about 16% year-on-year. Long-haul routes have gained popularity, with domestic destinations such as Xinjiang and Northwest China loop routes showing strong sales, while some popular international routes have already sold out. The company has achieved steady growth in revenue and profit, with hotel accommodation bookings and international business becoming the core drivers of growth. In Q2 2025 alone, the company reported revenue of RMB 14.864 billion, up 16.23% year-on-year, net profit attributable to shareholders of RMB 4.864 billion, an increase of 26.4%, and adjusted non-GAAP net profit attributable to shareholders of RMB 5.011 billion, up 0.5%. Adjusted EBITDA reached RMB 4.88 billion, a 10% increase, and adjusted operating profit was RMB 4.668 billion, up 10.4%.
Strategy：
Buy-in Price: $606.00, Target Price: $666.00, Cut Loss Price: $548.00
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Tencent (00700.HK) - AI-powered growth drives robust performance across all business segments
Financial performanceIn the second quarter of 2025, the company reported total revenue of CNY 184.5 billion, representing a year-on-year increase of 14.5%. In terms of profitability, operating profit reached CNY 60.1 billion, up 18.5% year-on-year, with the operating profit margin rising from 31.5% in the same period last year to 32.6%. Net profit attributable to equity holders of the company was CNY 55.6 billion, reflecting a year-on-year growth of 16.8%. By segment, Value-added Services revenue in 2Q25 saw robust growth, increasing by 15.9% year-on-year to CNY 91.4 billion, primarily driven by the sustained stability of top games. Online Marketing Services revenue grew by 19.7% year-on-year to CNY 35.8 billion, benefiting from improved user engagement, continuous AI upgrades to the advertising platform, and optimizations in the WeChat transaction ecosystem. FinTech and Business Services revenue increased by 10.1% year-on-year to CNY 55.5 billion, mainly due to growth in consumer loan services, wealth management services, as well as increased cloud services revenue and merchant service fees. Performance SummaryGaming Business
In the second quarter of 2025, the company's game revenue increased by 22.1% year-on-year to CNY 59.2 billion, accounting for 32.0% of total revenue, up from 30.1% in the same period last year. Among this, international market game revenue reached CNY 18.8 billion, a year-on-year increase of 35.3%, primarily driven by revenue growth from PUBG MOBILE and contributions from newly launched games. Domestic market game revenue grew by 16.8% year-on-year to CNY 40.4 billion, benefiting from sustained revenue growth of evergreen titles and the strong performance of the new game Delta Action, which achieved an average DAU of over 20 million in July, ranking among the top five in the industry by daily active users and top three by revenue. With a broader and more platform-diversified game portfolio, management expects reduced volatility in overall game revenue growth. Social Networks Business
In the second quarter of 2025, the company's Social Networks revenue increased by 6.3% year-on-year to CNY 32.2 billion, primarily driven by growth in game virtual item sales, live streaming services from Channels, and music subscription revenue. WeChat's user traffic continued to grow in 2Q25, with combined MAU reaching 1.411 billion, up 2.9% year-on-year. Meanwhile, monthly active accounts on QQ's smart terminal saw a slight decline compared to the same period last year. The number of registered paid value-added service subscriptions remained stable at 264 million year-on-year. Tencent Music's paid members recorded healthy growth, while Tencent Video's subscription count experienced a decline. Marketing Services Business
In the second quarter of 2025, the company's online marketing services revenue increased by 19.7% year-on-year to CNY 35.8 billion, primarily driven by AI-powered upgrades in advertising technology and new ad inventory from the Channels transaction ecosystem. According to management, the company enhanced its AI capabilities across advertising creation, placement, recommendation, and performance analysis, significantly improving ad click-through rates, conversion rates, and return on investment. This was achieved by deploying an upgraded foundational model to revamp the advertising platform architecture, which comprehensively analyzes cross-application/service ad click-through rates, transaction data, and user interactions with text, images, and videos to determine user interests in real time and optimize ad performance. Management noted that the company's short-form video ad load rate remains in the low single digits, compared to the industry average of 10%-15%. With continued AI-driven microtargeting, growing user traffic, and increasing advertiser demand, management expects advertising revenue to maintain healthy growth. FinTech and Business Services Business
In the second quarter of 2025, the company's FinTech and Business Services revenue reached CNY 55.5 billion, representing a year-on-year increase of 10.1%. Revenue growth from FinTech services accelerated to mid-to-high single digits, primarily driven by commercial payment services and consumer credit offerings. Business Services revenue achieved double-digit year-on-year growth. Cloud services revenue growth accelerated compared to recent quarters, mainly due to increased demand for GPU leasing to support AI workloads and growth in API token revenue. Company valuationGiven the company's better-than-expected growth in gaming and advertising businesses, sustained operating leverage effects, and the empowering role of AI technology across its ecosystem, we have accordingly raised our profit forecasts. Consequently, we upwardly revise our revenue estimates for 2025-2027 to CNY 746.7/828.6/917.6 billion, with adjusted net profit attributable to equity holders projected at CNY 259.1/279.2/313.9 billion. Corresponding EPS estimates are CNY 28/30/34, implying P/E ratios of 20/18/16x at the current share price. Based on SOTP valuation methodology, applying a 10% holding discount to the latest market values or valuations of subsidiaries and invested companies, we derive a total target market capitalization of CNY 5.6 trillion for Tencent in 2025. This corresponds to a target price of HKD 682 per share. We maintain our rating as 'Accumulate'. 
Risk factors1) Strict gaming regulations;
2) Weak macroeconomic environment;
3) Potential competitive threats from existing and emerging social platforms. Financials
(Current Price as of: Sep 10 2025)
Exchange rate: HKD/RMB = 0.91
Source： PSHK Est. Download PDF version...
| Recommendation on 22-9-2025 | | Recommendation | Accumulate | | Price on Recommendation Date | $ 633.500 | | Suggested purchase price | N/A | | Target Price | $ 682.000 |
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