news flash·2025-05-16 03:07Core Viewpoint - The report from CMB International raises the target price for Tencent Holdings to HKD 604, citing stable performance and the development of its AI ecosystem as key factors for this adjustment [1] Group 1: Financial Performance - Tencent's first-quarter performance exceeded expectations, with profit growth continuing to outpace revenue growth [1] - The company is expected to see a 10% increase in total revenue for the second quarter, reaching RMB 1,778 billion, and a 9.6% increase for the full year, totaling RMB 7,235 billion [1] Group 2: AI Investment Impact - The report highlights that Tencent's investments in AI are beginning to show results, contributing to growth across various business ecosystems [1] - Increased capital expenditure and AI investments are anticipated to narrow the gap between operating profit and revenue, with profit growth still expected to outpace revenue growth [1] Group 3: Gaming Sector Outlook - The introduction of new games is expected to alleviate market concerns regarding high comparatives in the gaming sector for the second half of the year [1]