Tencent Holdings (700 HK) Buy: Progress and investment in AI continue

Research evidence excerpt

Tencent Holdings (700 HK) Buy: Progress and investment in AI continue

largely in the price. Tencent

has been stepping up its pace of buyback to provide valuation support: maintain Buy. 52-WEEK PRICE (HKD)

AI developments highlight: 1) User experience is a focus: Weixin Agent (Xiao 720.00

Wei) beta testing allows Tencent to obtain feedback from real world adoption to drive 545.00

product improvement. 2) Building up skills ecosystem: It is collaborating with Mini

Program developers and brand merchants to convert source code into skills with 07/25 01/26 07/26370.00

authorization or to support customization. Meituan, JD, Didi, Trip.com and Tongcheng TargetHigh: 677.50price: 655.00Low: 411.80 Current: 469.60

are among those who can offer services on Weixin agent when it is launched. Source: LSEG IBES, HSBC estimates

3) Navigating computing resources limitations: Given the size of Weixin’s user

base, it is imperative to find a sustainable way of operating the agent cost effectively. Charlene Liu*

Head of Internet and Gaming Research, Asia Pacific

Tencent addresses it via token efficiency optimization: HY3 outperforms similar-size The Hongkong and Shanghai Banking Corporation

models in this respect. Tencent is also working on automatic triaging of less complex Limited, Singapore Branch

charlene.r.liu@hsbc.com.sg

tasks to edge devices for inferencing to save token consumption. It has announced +65 6658 0615

partnerships with phone manufacturers like VIVO, OPPO, Huawei and Honor for AI Ritchie Sun*, CFA

agent collaboration with voice command. 4) WorkBuddy: According to Analysys, Analyst, Internet Research

The Hongkong and Shanghai Banking Corporation Limited

WorkBuddy had 8.85m PC visits (vs. market at 20m) in March 2026, 2.6x/3.7x above ritchie.k.h.sun@hsbc.com.hk