CreditSights analysts Stephanie Sim and Pius Xue expect Tencent’s debt metrics
to remain stable over the next 12 months, supported by resilient revenue from
online advertising and gaming. They highlight the company’s strong balance
sheet, robust free cash flow, and liquidity, noting Tencent could hold more cash
than debt by year-end. A slight drop in EBITDA margin is expected due to higher
AI spending. The firm maintains an outperform rating, viewing Tencent as a
stable long-term play in Asia and China and a hedge against U.S. AI stocks.
