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S&P: TENCENT's Strong Game Rev. Growth Aids Credit Improvement
Recommend 13 Positive 23 Negative 1 |
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TENCENT (00700.HK)'s online game revenue has recorded strong growth, and potential reductions in AI-related investments could drive free operating cash flow to exceed expectations in 2025-26, said S&P Global Ratings. It is believed that Tencent's credit situation will further improve next year. S&P Global Ratings currently assigns an "A+" rating to TENCENT with a stable outlook. TENCENT's extensive and expanding game product portfolio demonstrates resilient demand for online games, capable of generating strong cash flow in the next 1-2 years. In addition, the shortage of AI chips may lead to reduced capital expenditure for TENCENT in 2H25 and early 2026. It is expected that management's decision to prioritize AI computing resources for the core business rather than selling cloud services or AI applications externally will enhance returns on AI-related capital expenditure, while driving stronger growth and higher profitability in the core business. AAStocks Financial News |
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