Goldman Sachs: Maintain Tencent "buy" rating, predicting first quarter performance will improve.

Goldman Sachs released a research report stating that Tencent is expected to announce its first quarter performance in mid-May this year. Investors are expected to focus on the progress of revenue growth driven by advertising technology, sustainability of growth in the gaming business in the second half of the year, growth prospects in financial technology business, and the development and ultimate profit model of AI intelligence agents. Goldman Sachs currently predicts that Tencent's first quarter performance will be favorable, with revenue and earnings per share expected to grow by 10% and 20% respectively year-on-year, with earnings growth outpacing revenue growth, mainly due to the rapid growth of high-profit businesses such as advertising and games, as well as operational leverage. Goldman Sachs maintains its "buy" rating on Tencent with a target price of HK$590, emphasizing that Tencent remains one of Goldman's most recommended stocks in the Chinese internet industry. As for the full-year forecast, the bank currently estimates that Tencent's revenue will grow by 10% year-on-year this year, with earnings per share expected to increase by 14%. It is believed that Tencent, leveraging its unique WeChat ecosystem and global gaming assets, has diversified profit channels and can achieve compound profit growth in macro cycles.