Lates News

China Merchants International released a report stating that Tencent Holdings' first quarter performance exceeded expectations with a 13% year-on-year increase in revenue and a 22% increase in non-IFRS net profit, both of which were 3% higher than market expectations. During the period, gaming and advertising revenue showed strong growth with year-on-year increases of 24% and 20% respectively. Profit margins also exceeded expectations due to shifts in revenue structure and improvements in cost efficiency. Based on the first quarter performance, the bank has raised its 2025 to 2027 non-IFRS net profit forecasts for Tencent by 3% to 7%, raised the target price from HK$625 to HK$660, and is optimistic about the continued growth of AI development driving various business sectors. They maintain a "buy" rating.