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<Research>UBS Expects TENCENT 1Q Adj. Profit to Lift 12% YoY; Rating Buy
UBS estimated TENCENT (00700.HK) to log an 11% YoY elevation in revenue for 1Q and a 12% YoY ascension in adjusted profit to RMB69.2 billion. By segment, the broker forecast domest...
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<Research>UBS Expects TENCENT 1Q Adj. Profit to Lift 12% YoY; Rating Buy
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UBS estimated TENCENT (00700.HK)  -4.000 (-0.787%)    Short selling $1.57B; Ratio 15.020%   to log an 11% YoY elevation in revenue for 1Q and a 12% YoY ascension in adjusted profit to RMB69.2 billion. By segment, the broker forecast domestic games revenue to grow 13%, international games revenue to add 16%, advertising revenue to rise 18%, and fintech and enterprise service revenue to expand 10%.

UBS noted that the market is focused on Tencent's AI strategy and margin outlook, in addition to the upcoming launch of its Hunyuan 3.0 LLM mid-April. Management was committed to investing no less than RMB18 billion in new AI products in FY26, but UBS believed market concerns over profit pressure from AI investments may be inflated.

Related NewsHSBC Research Initiates Coverage on Zhipu (02513.HK) and MiniMax (00100.HK) with Hold; Sees Further Revenue Upside for TENCENT (00700.HK) and ALIBABA (09988.HK)
UBS expected Tencent's FY26 adjusted EPS to gain 12% and assigned a Buy rating with a TP of HKD780.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-04-10 16:25.)

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