PROSUS NV / TENCENT HOLDINGS : Core momentum reassuring amid fast moving AI backdrop

Research evidence excerpt

PROSUS NV / TENCENT HOLDINGS : Core momentum reassuring amid fast moving AI backdrop

EQUITIES

INTERNET & MEDIA

OUTPERFORM TARGET PRICE EPS 03/27e EPS 03/28ePROSUS NV PRICE* EUR38.5  TARGET PRICE EUR58 (UPSIDE 51%)  -3%  5% non material

OUTPERFORM TARGET PRICE EPS 26e EPS 27eTENCENT HOLDINGS PRICE* HKD462.6  TARGET PRICE HKD750 (UPSIDE 62%)  -6%  2% non material

Core momentum reassuring amid fast moving AI backdrop

Tencent shares have been weak down, c35% from Sep-25 highs on growing anxiety around13 MAY 2026

Securities Research Report Tencent’s AI positioning amidst rapid moves by peers exacerbated by cautious margin commentary

Production time: 20:40* (London time)

at March’s FY25 results. We think today’s solid Q1, signals of a potential revenue growth

Research Analysts & Publishing Entities

acceleration, upbeat AI commentary and renewed buyback rhetoric can improve sentiment in a stock

William Packer that has de-rated to c10x PE ex 3P stakes. We rate Outperform with more details on AI here.BNP Paribas London Branch

(+44) 207 039 9509

william.packer@uk.bnpparibas.com Tencent reported results with solid core momentum this morning

Tencent reported Q126 results this morning, with 9% revenue growth (vs BBERG cons at 11%

Colin LIU

although in line ex Spring festival phasing), adj operating profit growth of 9% (cons at 8%) and adjBNP Paribas Securities (Asia) Limited

+852 2825 1083 EPS growth at 14% (cons at 12%). More details here.

colin.liu@asia.bnpparibas.com

Key conf call takeaways: AI position in focus

1/ Hunyuan model momentum progressing well with strong internal usage benefits and healthy 3P

token user. Company have a planned roadmap to expand agent usage across Tencent’s Wechat

and mini programme ecosystem although management were non-committal on timing.