CICC International: Raises TENCENT (00700) target price to 705 Hong Kong dollars, rating "buy"

CICC released a research report stating that TENCENT (00700) had a 15% year-on-year increase in second quarter revenue to 184.5 billion RMB, with a gross profit margin of 56.9% and an adjusted operating profit increase of 18% year-on-year to 69.2 billion RMB, both exceeding expectations. The bank believes that the company is gradually benefiting from artificial intelligence, demonstrating sustained, stable, high-quality growth in its core business segments and the gradual commercialization of artificial intelligence, and fully utilizing the various integrated usage scenarios of the WeChat ecosystem, as well as diverse artificial intelligence products and functions. The bank stated that it has raised its target price to 705 HKD and rated the stock as "Buy".