Morgan Stanley: Tencent Holdings' first-quarter performance exceeds expectations in all aspects, rated as "overweight" with a target price of HKD 630.

Morgan Stanley issued a report stating that Tencent Holdings' first-quarter performance exceeded expectations in all aspects, with revenue increasing by 13% year-on-year, surpassing the market's expectation of 3%. Tencent's first-quarter Non-IFRS net profit increased by 22%, exceeding the market's expectation of 4% according to Morgan Stanley. Tencent repurchased 17.1 billion Hong Kong dollars in the first quarter of this year, with a target of repurchasing over 80 billion Hong Kong dollars for the year. Capital expenditure in the first quarter was 27.5 billion RMB, compared to 36.5 billion RMB in the end of last year, with the full-year capital expenditure guidance to be in the low double-digit percentage of total revenue. Morgan Stanley has rated Tencent as "overweight" with a target price of 630 Hong Kong dollars.