TENCENT(HK:00700) Ge Long Hui·2025-10-13 04:47Core Viewpoint - Goldman Sachs reports that Tencent's stock price has increased by 56% this year, outperforming the Hang Seng Tech Index's 44% rise, despite renewed investor concerns over US tariffs and geopolitical risks [1] Group 1: Financial Performance - Goldman Sachs anticipates that the market will focus on AI applications and capital expenditure outlook in Tencent's Q3 performance [1] - The firm predicts a year-on-year revenue increase of 13% and an 18% rise in earnings per share, driven by high-margin revenue sources and operational leverage [1] Group 2: Capital Expenditure and Revenue Forecast - Goldman Sachs has raised its capital expenditure forecast for Tencent from 350 billion to 3500 billion for the years 2023 to 2027 [1] - The firm has also upgraded its cloud revenue growth forecast [1] Group 3: AI Integration and Business Outlook - Goldman Sachs believes that Tencent's AI capabilities empower all its business lines, benefiting from its unique WeChat ecosystem and global gaming assets [1] - The firm maintains a "Buy" rating on Tencent, raising the base case target price from 701 HKD to 770 HKD, with a bull case target price of 846 HKD [1]