CITIC International: Raises Tencent Holdings Limited's target price to HKD 635, reiterates "Outperform" rating
Jianyin International released a research report stating that it has raised its revenue forecast for Tencent Holdings for the fiscal years 2025 to 2027 by 2%, and its earnings forecast by 1 to 2%. It expects revenue, operating profit, and net profit for the fiscal year 2025 to grow by 11%, 17%, and 12% respectively, and has raised the target price from HKD 630 to HKD 635. Due to the group's sustainable profit growth, the long-term development of Tencent's artificial intelligence business, unique AI examples, and the monetization of the WeChat ecosystem in the medium to long term, it reaffirms the stock's "outperform" rating. The bank stated that Tencent's first-quarter performance was robust, and the group's internal investment strategy in artificial intelligence lays the foundation for its long-term growth path in online business. Due to a lag between high chip depreciation and significant revenue generated from artificial intelligence, higher AI investments may temporarily narrow the gap between revenue and operating profit growth
According to the Zhitong Finance APP, Jianyin International has released a research report stating that it has raised its revenue forecast for Tencent Holdings (00700) for the fiscal years 2025 to 2027 by 2%, and its earnings forecast by 1 to 2%. It expects revenue, operating profit, and net profit for the fiscal year 2025 to grow by 11%, 17%, and 12% respectively, and has raised the target price from HKD 630 to HKD 635. Due to the group's sustainable profit growth, the long-term development of Tencent's artificial intelligence business, unique examples of artificial intelligence, and the monetization of the WeChat ecosystem in the medium to long term, it reaffirms the stock's "outperform the market" rating.
The bank stated that Tencent's first-quarter performance was robust, and the group's internal investment strategy in artificial intelligence lays the foundation for the long-term growth path of its online business. Due to the lag between high chip depreciation and significant revenue generated from artificial intelligence, higher investments in artificial intelligence may temporarily narrow the gap between revenue and operating profit growth
