HSI1 24,340.73 +127.01 312.92B
HSCEI1 8,103.08 +37.11 91.77B
Back    Zoom +    Zoom - Block Traded
JPM Projects TENCENT 2Q Revenue to Grow 9% YoY, Reiterates Overweight Rating
2026-07-14 12:46:37
JPMorgan released a report reiterating its Overweight rating on TENCENT (00700.HK), with the TP maintained at HKD690. The broker believed Tencent remains the highest-quality compound growth stock in China's internet sector, backed by durable user engagement, continuously improving monetization capabilities in gaming and advertising, strong margins and balance-sheet capacity, as well as AI optionality with tangible monetization pathways.

The report noted that, as Tencent ramps up AI investment and expects depreciation charges to begin from 2H26, the broker lowered its forecast for Tencent's FY2026 non-IFRS EPS by 5% to RMB28.47, while raising its FY2026 capex forecast to RMB200 billion. However, the broker emphasized that the adjustments reflect heavier AI investment and depreciation rather than deterioration in Tencent's existing core businesses.
~

AASTOCKS Financial News
Website: www.aastocks.com