Di Yi Cai Jing Zi Xun·2026-01-19 08:58Core Viewpoint - Tencent Holdings has experienced a downward trend in stock price after reaching a peak of 639 HKD on January 13, 2026, with a significant drop below 610 HKD recently, indicating a potential profit-taking phase by investors [2][3]. Group 1: Stock Performance - Tencent's stock price has shown a "lower high" pattern since reaching 683 HKD on October 2, 2025, with subsequent peaks at 662 HKD and 639 HKD, reflecting a technical downtrend [2]. - Despite a cumulative increase of over 200% in stock price since October 2022, recent performance has lagged behind the Hang Seng Index, suggesting a short-term consolidation phase [2][5]. - The stock has faced selling pressure even after positive reports from multiple investment banks, indicating a cautious market sentiment [3][4]. Group 2: Business Developments - On January 15, 2026, Tencent reported significant growth in its WeChat mini-programs, with usage exceeding 5 billion times globally, and a 320% increase in transaction volume for WeChat stores from August to December 2025 [3]. - Investment banks like CICC and UBS have maintained positive ratings for Tencent, with target prices set at 700 HKD and 780 HKD respectively, reflecting confidence in the company's long-term growth prospects [3][4]. - UBS highlighted Tencent's unique advantages in AI applications due to its large user base and robust mini-program ecosystem, bolstered by the recent hiring of a new AI head from OpenAI [4]. Group 3: Share Buybacks - Tencent has been actively repurchasing shares, with over 40 million shares bought back at a cost exceeding 25 billion HKD since November 2025, signaling confidence in its long-term value [5]. - The company's buyback strategy is viewed favorably by international investors, who prefer buybacks over dividends to avoid tax costs, aligning with Tencent's shareholder return policies [6].