Jiangyin International: Raises Tencent Holdings Limited target price to HKD 604, expects total revenue to increase by 10% in the second quarter
Jiangyin International released a research report stating that considering Tencent's stable performance and the development of its AI ecosystem, as well as shareholder returns, the bank believes that its AI investments have shown results. Therefore, it has raised the target price to HKD 604, corresponding to a 20 times price-to-earnings ratio for 2025, maintaining a "Buy" rating. The report indicates that Tencent's first-quarter performance exceeded expectations, with profit growth continuing to outpace revenue. The bank believes that the increase in the group's AI investments and capital expenditures will likely narrow the gap between operating profit and revenue, while profit growth will still outpace revenue. Benefiting from AI technology, the group's various ecosystem businesses have all seen growth. The bank expects total revenue in the second quarter to increase by 10% to RMB 177.8 billion, with annual revenue increasing by 9.6% to RMB 723.5 billion. In terms of gaming, the bank believes that new games may help alleviate previous market concerns about the high base for games in the second half of the year
According to the Zhitong Finance APP, Jiangyin International released a research report stating that considering Tencent Holdings (00700)'s stable performance and the development of its AI ecosystem, as well as shareholder returns, the bank believes that its AI investments have shown results. Therefore, it has raised the target price to HKD 604, corresponding to a 20 times price-to-earnings ratio for 2025, maintaining a "Buy" rating.
The report indicates that Tencent's first-quarter performance exceeded expectations, with profit growth continuing to outpace revenue. The bank believes that the increase in the group's AI investments and capital expenditures will likely narrow the gap between operating profit and revenue, while profit growth will still outpace revenue. Benefiting from AI technology, the group's various ecosystem businesses have all seen growth. The bank expects total revenue in the second quarter to increase by 10% to RMB 177.8 billion, with annual revenue increasing by 9.6% to RMB 723.5 billion. In terms of gaming, the bank believes that new games may help alleviate previous market concerns about the high base for games in the second half of the year
