CITIC International: Raises Tencent Holdings Limited target price to HKD 717, reiterates "Outperform" rating
Jianyin International released a research report stating that Tencent Holdings, as a unique and important beneficiary of artificial intelligence, reaffirmed its industry preference and "outperform the market" rating. It raised the target price by 13%, from HKD 635 to HKD 717. The firm expressed greater confidence in Tencent's ability to deploy artificial intelligence across all business lines, leveraging its unique and yet-to-be-fully-monetized WeChat ecosystem to drive sustainable profit growth. Following the earnings report, the firm raised the group's revenue and profit forecasts for 2025-2027 by 2%/3%/3% and 3%/5%/5%, respectively. The report indicated that, driven by the strong momentum of Tencent's evergreen game "Delta Force" and the upcoming contribution from "Valorant Mobile," the firm expects the group's gaming revenue in the third quarter to grow by 16%, with domestic/international markets growing by 14%/20%, respectively. Additionally, the third quarter advertising revenue is also expected to grow by 19%
According to Zhitong Finance APP, Jianyin International released a research report stating that Tencent Holdings (00700), as a unique and important beneficiary of artificial intelligence, reaffirms its industry preference and "outperform the market" rating. It raised the target price by 13%, from HKD 635 to HKD 717. The firm expressed greater confidence in Tencent's ability to deploy artificial intelligence across all business lines, leveraging its unique and yet-to-be-fully-monetized WeChat ecosystem to drive sustainable profit growth. Following the earnings report, the firm raised the group's revenue and profit forecasts for 2025-2027 by 2%/3%/3% and 3%/5%/5%, respectively.
The report indicated that, driven by the strong momentum of Tencent's evergreen game "Delta Force" and the upcoming contribution from "Valorant Mobile," the firm expects the group's game revenue in the third quarter to grow by 16%, with domestic/international markets growing by 14%/20%, respectively. It also anticipates a 19% increase in advertising revenue in the third quarter
