Haitong International: Cuts Tencent Holdings (00700.HK) target price to HK$470, expects Q3 adjusted operating profit to fall 5% year-on-year

Zhitong Finance APP has learned that Haitong International issued a research report stating that it has slightly lowered the target price of Tencent Holdings (00700.HK) by 2% to HK$470 to reflect the downward revision of earnings per share forecasts, while maintaining an "Outperform" rating; the bank expects Tencent's third-quarter revenue to be RMB 210.2 billion, up 9% year on year, and adjusted operating profit to be RMB 68.8 billion, down 5% year on year, mainly due to AI-related depreciation and product investments reflected in cost of revenue and operating expenses. The bank expects Tencent's 2026 revenue to be RMB 823.3 billion, up 10% year on year, and adjusted net profit to be RMB 265.5 billion, up 2% year on year.