Tencent: Steady progress in AI development powers future growth

研报英文原文证据摘录

Tencent: Steady progress in AI development powers future growth

Deutsche Bank

Research

Rating Company Date

Buy Tencent 14 May 2026

Results

Asia

China

Reuters Bloomberg Exchange Ticker Price at 13 May 2026 (HKD) 462.60

0700.HK 700 HK HSI 0700

Price target - 12mth (HKD) 800.00

Technology

Software & Services ADR ISIN 52-week range (HKD) 677.50457.20-

TCEHY US88032Q1094

Unavailable 26,388

Steady progress in AI development

Valuation & Risks powers future growth

Leo Chiang, CFA

Strong core funds AI; buy maintained Research Analyst

Tencent delivered on track 1Q results, with revenue and adjusted net profit +852-220-36240

increasing 9% and 11% YoY, respectively. Notably, the company made significant

initial progress on new AI products, including its LLM "Hy3 preview" and AI agent Key changes

solutions such as WorkBuddy and CodeBuddy. These AI advancements have been 834,314 to

Sales (FYE) ↓ -0.3%

instrumental in growing existing core businesses and driving rapid growth in token 831,498

usage on Tencent Cloud. Core businesses sustained healthy momentum with GPM Adjusted OP 307,998.9 to

↑ 0.5%

continuing its upward trend due to a favourable revenue mix. This solid Income (FYE) 309,557.5

performance provides strong cash flow, enabling significant investments in AI and Adjusted Net 285,230.7 to ↓ -0.5%

offering practical use cases for future AI deployments. We broadly maintain our profit (FYE) 283,788.3

FY26/27 financial forecasts, and our target price remains unchanged at HKD800. Source: Deutsche Bank

We remain confident that Tencent can establish a strong AI position by leveraging

Price/price relative

its established consumer and enterprise ecosystem. Potential catalysts include

future LLM updates or further breakthroughs in agentic AI applications. We

reiterate our Buy rating.