Goldman Sachs: Maintains "buy" rating on TENCENT (00700) with a target price of 700 Hong Kong dollars.

Goldman Sachs has released a research report stating that it maintains a "buy" rating for TENCENT (00700) with a target price of 700 Hong Kong dollars. Despite Tencent's slower profit growth for the full year, the bank continues to forecast a 10% year-on-year increase in adjusted operating profit for the first quarter and an 8% increase for the full year. Tencent has released the open-source Hy3 preview language model, which is the first specific outcome after the Group's AI strategic restructuring. The model indicators and emphasis on intelligent agent functionality basically meet expectations. The model was developed by Chief AI Scientist Yao Shunyu (former researcher at OpenAI) with a parameter of 295 billion (210 billion activation parameters), which is smaller in scale compared to competitors, focusing on practicality, agent function, complex reasoning, and coding capability. Goldman Sachs believes that the release of Hy3 preview is a key advancement after the comprehensive restructuring of the team last week, and expects that the official version of Hy3 and larger parameter models will be released sequentially.