0323 GMT - Tencent's valuation repair path will hinge on the progression of its AI narrative, Goldman Sachs analysts say in a research note. "Despite Tencent's near-term profit growth pressure from AI investment ramp-up, we note early signs of progress of Tencent's AI strategy," the analysts write. GS raises its capex forecasts for Tencent to 151 billion yuan this year and 165 billion yuan next year. How Tencent secures sufficient domestic AI equipment supply over the coming years also remains critical to its AI development, the analysts say. They reckon Tencent's unique Weixin ecosystem and global gaming assets will enable the company to deliver compounding earnings through macro cycles. GS maintains its Tencent target price at HK$700.00. Shares are last at HK$464.00.(sherry.qin@wsj.com)
Tencent Holdings Ltd is an investment holding company primarily engaged in the provision of value-added services (VAS), online advertising services, as well as FinTech and business services. The Company primarily operates through four segments. The VAS segment is mainly engaged in the provision of online games, video account live broadcast services, paid video membership services and other social network services. The Online Advertising segment is mainly engaged in media advertising, social and other advertising businesses. The FinTech and Business Services segment mainly provides commercial payment, FinTech and cloud services. The Others segment is principally engaged in the investment, production and distribution of films and television program for third parties, copyrights licensing, merchandise sales and various other activities.
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Investor
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Global
Global
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