GO
| HSI1 | 24,186.83 | +124.11 | 178.21B |
| HSCEI1 | 8,128.25 | +24.98 | 60.40B |
| Back Zoom + Zoom - Block Traded | |
|
2026-10-16 10:38:58 JPMorgan said in a report that TENCENT (00700.HK)'s artificial intelligence strategy now has a clear sequence, but returns will take longer to materialize. The bank lowered its 2026 and 2027 non-IFRS EPS forecasts by 2% and 10%, respectively, mainly due to rising AI depreciation and related costs. It maintained an "Overweight" rating and cut the TP from HKD690 to HKD625. The bank noted that Tencent is first building competitive in-house models through a rapid product launch cadence, then monetizing enterprise productivity tools and cloud businesses first, and only expanding AI agents within WeChat at nationwide application scale when quality and cost conditions permit. The bank believes this sequence leverages Tencent's strengths, but will front-load costs. The bank said it would remain positive on Tencent because it has high-quality core businesses capable of supporting AI investment, an undemanding valuation, and WeChat AI agent potential that exceeds the bank's forecasts. (ha/ad)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |