TENCENT(HK:00700) Ge Long Hui·2025-11-19 02:44Core Viewpoint - Bank of America Securities expresses a positive outlook on Tencent's core business growth prospects, endorsing management's cautious yet optimistic view on financial technology and enterprise services (FBS) [1] Group 1: Business Outlook - The firm reiterates Tencent as a top pick in the industry, maintaining a "Buy" rating and a target price of HKD 780 [1] - After considering the impact of China's chip supply situation and quarterly capital expenditure fluctuations, the firm forecasts Tencent's capital expenditures to reach RMB 75 billion and RMB 90 billion in the next two years, respectively [1] Group 2: Competitive Position - Despite Tencent's AI application, Yuanbao, lagging behind competitors like ByteDance's Doubao and Alibaba's Kuaik, the firm attributes this to differing promotional strategies rather than model capabilities [1] - The firm remains confident that Tencent benefits from its dominant position in WeChat and a comprehensive content and service mobile ecosystem, providing an advantage in China's AI agent competition [1]