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<Research>CMBI: TENCENT (00700.HK) 1Q Profit Growth Stable; AI Progress Solid
TENCENT (00700.HK) charted total revenue growth of 9% YoY in 1Q, slightly below expectations, CMBI mentioned in its report. Non-IFRS operating profit added 9% YoY, broadly in line....
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<Research>CMBI: TENCENT (00700.HK) 1Q Profit Growth Stable; AI Progress Solid
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TENCENT (00700.HK)  -7.200 (-1.578%)    Short selling $1.32B; Ratio 9.930%   charted total revenue growth of 9% YoY in 1Q, slightly below expectations, CMBI mentioned in its report. Non-IFRS operating profit added 9% YoY, broadly in line. Excluding investment in new AI products, non-IFRS operating profit hiked 17% YoY, indicating that TENCENT possesses strong operating leverage and the ability to maintain stable profit growth even while increasing investment in AI.

The broker largely maintained its earnings forecasts for FY26-28 and reiterated a TP of HKD750, reaffirming a Buy rating. It believed that TENCENT's earnings are resilient; paired with its continued accumulation of competitiveness in AI, the current risk-reward is attractive.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-18 16:25.)

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