The bank looks forward to gaining further details on the 2026 capital expenditure plan from the earnings call. It maintains its top pick in the sector and a 'Buy' rating, with a target price of HKD 780.
According to Zhitong Finance APP, a research report issued by Bank of America Securities stated that Tencent delivered solid results after the market closed yesterday (August 13). Revenue increased by 15% year-on-year to RMB 192.9 billion, which was 2% higher than expected. Non-IFRS net profit amounted to RMB 70.6 billion, representing an 18% year-on-year increase and exceeding market expectations by 7%. The bank expressed satisfaction with Tencent's robust execution, particularly in its advertising and gaming businesses. As investors focus on the upward trend in structural AI investments and quarterly expenditure fluctuations, the bank anticipates gaining further details about the 2026 capital expenditure plan from the earnings call. It maintains Tencent as the top pick in the industry, reiterating a 'Buy' rating with a target price of HKD 780.
