BOCI Research: Raising Tencent Holdings (00700.HK) target price to 634 Hong Kong dollars, reiterating a "Buy" rating.

According to the Wise Financial APP, CCB International released a research report stating that Tencent Holdings (00700.HK) first quarter performance exceeded expectations, with a 13% year-on-year revenue growth, which is 3% higher than the bank's and market's general expectations. The bank believes that Tencent's accelerated investment in artificial intelligence and gradual realization is forming a virtuous cycle of business development, driving business efficiency improvement, continuous expansion of gross profit margin, and is expected to capture sustainable opportunities brought by AI in content generation, distribution and monetization. CCB International reaffirmed its "buy" rating on Tencent, raising its target price to HKD634 and adjusting its earnings per share forecast for 2025 to 2027 by 1% to 2%, game revenue forecast by 3% to 4%, and online advertising revenue forecast by 3% to 8%.