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<Research>CMBI Slightly Trims TENCENT's TP to HKD750; Results in Line, AI Investment Expands Further
Recommend 13 Positive 15 Negative 11 |
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TENCENT (00700.HK) has announced its 4Q25 results, with total revenue/ on-IFRS operating profit growing by 13%/ 17% YoY to RMB194.4 billion/ RMB69.5 billion, both meeting market expectations, according to CMBI's research report. The report highlighted that 2026 will be a critical AI investment year for TENCENT. This year, the management plans to raise the investment in new AI products by over two times the amount for FY25, meaning that it will exceed RMB36 billion. While the AI investment might weigh on TENCENT's short-term earnings growth, it is believed that this move will strengthen the company's core business, seize new opportunities in agentic AI technology, and alleviate investor concerns that TENCENT may lag in AI competition due to insufficient investment. Still optimistic about TENCENT's core business resilience and AI business opportunities, CMBI has kept the Buy rating unchanged but slightly cut its target price from HKD760 to HKD750. AAStocks Financial News |
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