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<Research>CICC: TENCENT (00700.HK) Core Biz Like Social Networks & Games Show Strong Resilience; Rating Kept at Outperform
Recommend 18 Positive 26 Negative 5 |
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If AI deployment is simplified into AI organizational priority, capital expenditure and product output, TENCENT (00700.HK) appears relatively slower in its AI moves compared with its peers, according to a research report issued by CICC. The broker believed that this may stem from TENCENT's unique product DNA (social), as well as its relatively bottom-up organizational structure, culture and other factors. This round of AI development requires capital expenditure at the scale of hundreds of billions, centralized organizational restructuring, and a high degree of reliance on top-down rapid decision-making. The strong resilience of TENCENT's main businesses, such as social networks and games, is akin to having sufficient supplies during wartime, providing the greatest confidence for TENCENT to sustain long-cycle investment in AI trends, CICC noted. Therefore, the broker maintained its 2026/ 2027 earnings forecasts for the Group unchanged, and kept rating/ target price at Outperform/ $666, corresponding to a 2026 non-IFRS PE ratio of 20x. Auto-translated by AI AASTOCKS Financial News |
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