JP Morgan: Tencent (00700) second quarter revenue increases by 9%, reiterates "overweight" rating.

13:44 14/07/2026

J.P. Morgan Chase estimates that Tencent's revenue in the second quarter of this year will increase by about 9% year-on-year. Among them, value-added service revenue will increase by 5% to 6%, game revenue will increase by 9% to 10%, marketing service revenue will increase by 18% to 19%, and financial technology revenue will increase by about 5%, which is basically in line with market expectations.

JPMorgan released a research report stating that it reiterates its "overweight" rating on TENCENT (00700), with a target price of 690 Hong Kong dollars. The bank believes that Tencent is still the highest quality compounding growth stock in the Chinese internet industry, with enduring user engagement, continually improving gaming and advertising monetization capabilities, strong profit margins and balance sheet strength, as well as a concrete path to monetize AI options. The report pointed out that due to Tencent increasing its AI investments and expecting depreciation to begin in the second half of this year, the bank has lowered its forecast for Tencent's 2026 fiscal year Non-IFRS earnings per share by 5% to 28.47 Chinese yuan, and raised the capital expenditure forecast for 2026 to 200 billion Chinese yuan. However, the bank emphasized that the adjustments reflect heavier AI investments and depreciation, rather than a deterioration of Tencent's existing core business. JPMorgan expects Tencent's second quarter revenue to grow by about 9% year-on-year this year, with value-added services revenue growing by 5-6%, gaming revenue by 9-10%, marketing services revenue by 18-19%, and financial technology revenue by around 5%, which is in line with market expectations.

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