Nomura cut Tencent Holdings (00700.HK) Non‑IFRS net profit forecasts for fiscal
2026 and 2027 by 2% and 1%, respectively, citing increased AI investment that
may compress margins. The broker maintained a Buy rating and an unchanged target
price of HK$727. Nomura flagged recent AI progress — including the early‑July
launch of Hunyuan 3.0 and desktop AI assistant WorkBuddy becoming one of
mainland China’s most used PC AI agents — but said similar product launches from
Alibaba and ByteDance, plus low switching costs and weak willingness to pay,
mean near‑term competition should remain intense.
