Institution: After a recent pullback, Tencent's stock price appears to have an undervalued valuation.

Morningstar analyst Ivan Su stated in a research report that Tencent's stock price appeared undervalued after a recent pullback. He said that amidst the uncertainty surrounding AI, as the market penalizes Chinese internet stocks, Tencent's stock price has dropped by about 30% so far this year. He mentioned that investors are particularly concerned about Tencent's high AI expenses and its AI products lagging behind domestic competitors. "This reaction is excessive," the analyst said, pointing out that AI has strengthened Tencent's core business. Su noted that with Tencent's flagship games continuing to dominate China's best-selling games ranking, and with Video Number releasing high-profit margin advertising revenue, it seems more difficult to prove that this discount is reasonable compared to the current fundamentals.