The Zhitong Finance App learned that Nomura released a report stating that it maintains Tencent's (00700) “buy” rating, with a target price of HK$437.

According to the bank, Tencent's WeChat search was officially upgraded to “WeChat Search”. In addition to searching for applets and products, you can also search hot topics such as weather, stocks, music, medical advice, video entertainment, news, and encyclopedias. In addition to rich content and upgrades, the new “WeChat Search” has also been completely revised for advertising and has new visual materials. Brand owners can download WeChat search materials in the back office of the WeChat public platform and promote them through online and offline, own traffic, and advertising channels. This will become a new driving force for Tencent's advertising revenue in the future.

Nomura said that WeChat has yet to monetize its search service at this stage, but after the search volume reaches the company's target, he believes it is only a matter of time before WeChat launches search advertising services for brands and service providers. Among them, the WeChat Mini App can play an important role, and he believes there is huge potential for business opportunities.