TENCENT(HK:00700) Ge Long Hui A P P·2026-01-16 02:41Core Viewpoint - The report from CICC is optimistic about Tencent's main businesses in gaming, advertising, financial services, and enterprise services, expecting high-quality growth and accelerated investment in AI [1] Group 1: Business Performance - Tencent's gaming revenue is expected to grow this year, supported by various ecosystem products like video accounts and mini-programs [1] - Advertising revenue is anticipated to outperform market expectations, driven by deeper collaboration among ecosystem products [1] - Financial technology and enterprise services revenue is projected to grow by 10% year-on-year in Q4 of last year [1] Group 2: Financial Projections - CICC forecasts a 23% year-on-year increase in adjusted operating profit for Tencent in Q4 of last year [1] - Adjusted net profit is also expected to rise by 23% year-on-year [1] - The revenue forecast for this year has been slightly reduced by 1% to 831.7 billion yuan, while Non-IFRS profit forecasts for 2025 and 2026 have been increased by 1% to 262.9 billion yuan and 294.8 billion yuan, respectively [1] Group 3: Investment Rating - CICC maintains a "beat industry" rating for Tencent with a target price of 700 HKD [1]