Haitong International cut its target price for Tencent Holdings (00700.HK) 2% to
HK$470 and kept an Outperform rating. It forecasts Q3 revenue of RMB210.2bn, up
9% YoY, and adjusted operating profit of RMB68.8bn, down 5% YoY, attributing the
decline to AI-related depreciation and product investment recorded in cost of
revenue and opex. Haitong projects 2026 revenue of RMB823.3bn (+10% YoY) and
adjusted net profit of RMB265.5bn (+2% YoY). The broker said AI remains
Tencent’s strategic investment priority; near-term depreciation will weigh on
results but management is expected to deploy capital with discipline rather than
automatically accelerating quarterly spend. The PT cut reflects reduced EPS
forecasts.
