CITIC Securities International: Maintains "Buy" rating for Tencent Holdings (00700), target price lowered to HKD 620.

According to the Zhiyun Finance APP, CMB International Securities has released a research report stating that Tencent Holdings (00700) slightly exceeded expectations in its Q2 performance, with domestic gaming and advertising business growth surpassing expectations. Excluding the investments in new AI products, operating profit increased by 19% year-on-year, and the quality of profitability in the core businesses continues to improve. On the other hand, Tencent has clarified its four major AI strategies, supporting more aggressive capital expenditure. The firm pointed out that the profitability released by AI empowerment in core businesses provides support for AI investments. They remain optimistic about Tencent's AI products and ecological moat, maintaining a buy rating while lowering the target price from HKD 632 to HKD 620.