《大行》中銀國際: Market sentiment on Tencent (00700.HK) AI progress increases in approval; maintains a “Buy” rating, targeting 655 yuan

BOC International issued a report, expecting Tencent (00700.HK) to have short positions of $12.37 billion, with a ratio of 14.323%. This year’s second-quarter total revenue is expected to grow 9% year-on-year, and operating profit is expected to grow 6% year-on-year, which are 1% and 6% lower than market expectations, respectively. Of these, online gaming revenue is expected to grow 10% year-on-year, online advertising revenue to grow 18% year-on-year, and fintech and enterprise services revenue to grow 9% year-on-year, including cloud business revenue accelerating to grow 23%. The firm believes the company will continue to accelerate its AI investment, reflecting in capital expenditures and day-to-day operating costs, and will also accelerate AI commercialization, especially in cloud business. It has seen the market’s increasing recognition and confidence in the company’s AI strategy execution over the past few months, including the underlying foundation models, products, infrastructure, commercialization, and organizational structure.

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It currently expects 2026 capital expenditure to be around RMB 161 billion (up 103% year-on-year), and adjusted operating profit to rise 3% year-on-year to RMB 290 billion. Maintains a “Buy” rating and leaves the target price unchanged at HK$655. (su/da) (Hong Kong stock quotes are delayed by at least fifteen minutes. Short-selling data as of 2026-07-10 12:25.)