JPMorgan released a research report stating that Tencent (00700.HK) showed strong performance in the first quarter, with revenue from Gaming and online advertising accelerating to over 20%, indicating that the group has unique advantages that enable it to achieve sustainable profit growth. Furthermore, although increased capital expenditures in the second half of the year may impact profits, the group's earnings per share growth rate in the first quarter is still higher than the revenue growth, and it is expected that its stock price will respond positively in the short term.
The firm set a Target Price of 600 yuan for Tencent, with a rating of "Shareholding."
