All Hong Kong stocks quotes are at least 15 minutes delayed.
00700
TENCENT
HKD
489.200-7.400
(-1.49%)
1D
AI Analysis for 00700
AI Analysis
High
496.000
Open
496.000
VWAP
488.76
Vol
17.03M
Mkt Cap
4.99T
Low
485.000
Amount
8.32B
EV/EBITDA(TTM)
--
Total Shares
9.11B
EV
579.07B
EV/OCF(TTM)
--
P/S(TTM)
5.32
Tencent Holdings Ltd is an investment holding company primarily engaged in the provision of value-added services (VAS), online advertising services, as well as FinTech and business services. The Company primarily operates through four segments. The VAS segment is mainly engaged in the provision of online games, video account live broadcast services, paid video membership services and other social network services. The Online Advertising segment is mainly engaged in media advertising, social and other advertising businesses. The FinTech and Business Services segment mainly provides commercial payment, FinTech and cloud services. The Others segment is principally engaged in the investment, production and distribution of films and television program for third parties, copyrights licensing, merchandise sales and various other activities.
Show More
News
4.5
03-23aastocksHSI Drops 876 Points or 3.5% at Midday; Gold, Silver, and Resource Stocks Fall; Certain Auto Stocks Still Gain
Market Overview: The Hang Seng Index (HSI) fell 3.5% to 24,400, with significant declines in the HSCEI and HSTECH, reflecting a total market turnover of HKD192.375 billion.
Tech Sector Performance: Major tech stocks like TENCENT, BABA-W, and MEITUAN-W experienced declines of 1.9% to 3.7%, with high short selling ratios indicating bearish sentiment.
Gold and Silver Stocks: Gold and silver stocks faced substantial losses, with companies like CHINAGOLDINTL and ZHAOJIN MINING dropping 4.5% to 6.2%, while ZIJIN MINING reported a profit increase but still saw a 5.4% decline.
Auto Sector Trends: BYD COMPANY and XPENG-W showed slight gains, while other auto stocks like XIAOMI-W and NIO-SW fell between 3.9% and 5.1%, indicating mixed performance in the sector.
6.5
03-23aastocksUBS: Tencent's AI Investments Set Stage for Long-Term Growth; Rating Maintained at Buy
UBS Report on TENCENT: UBS recently met with TENCENT's management to discuss AI development and monetization models, believing the company is well-positioned for long-term growth with an underestimated potential in AI.
Investment Ratings: UBS reiterated TENCENT as a top pick with a Buy rating and a target price of $780, while Citi also lifted its target price to $787, expecting resilience in TENCENT's core business.
AI Development Challenges: TENCENT's Weixin agent faces challenges such as limited model capabilities, data privacy concerns, and economic model difficulties, but the upcoming Hunyuan 3.0 model is anticipated to be a significant advancement.
TENCENT's Strengths: The company's strengths include its popular platforms WeChat and QQ, which serve as natural interfaces for AI, along with its cross-platform capabilities and expertise in security software.
3.5
03-23aastocksCICC Study: Agent Rise Will Not Significantly Alter Mainstream Online Content Platforms
Release of Seedance 2.0: ByteDance launched its AI video generation model Seedance 2.0 in February, showcasing advanced capabilities in full-modal input/output and narrative consistency, quickly gaining global attention.
Impact on Content Platforms: CICC reports that while AIGC tools like Seedance 2.0 may enhance efficiency and lower content creation barriers, they are unlikely to significantly disrupt mainstream online content platforms due to differing consumption scenarios.
Market Dynamics: The rise of AIGC tools could stabilize oversupplied markets like short videos while potentially increasing demand in undersupplied areas such as long videos and music, possibly leading to the emergence of new platforms.
Stock Market Reactions: Various companies in the tech and entertainment sectors, including Tencent and Kuaishou, are experiencing fluctuations in stock prices and short selling activity, reflecting investor sentiment amid the shift towards AI-driven products.
4.0
03-23aastocksNomura Lowers TENCENT's Target Price to HKD727 and Reduces Net Profit Projections Amid Rising AI Investments
Investment in AI: TENCENT plans to significantly increase its investment in AI products this year, with a budget exceeding RMB36 billion, which is over 4% of the market's revenue forecast for 2026.
Cloud Business Growth: The company's cloud revenue growth is expected to accelerate from 16% last year to 20% this year, indicating a strategic shift in its cloud business.
Profit Margin and Forecast Adjustments: Due to the increased AI investment, TENCENT's non-GAAP operating profit margin is projected to decline slightly, leading to a slowdown in operating profit growth to 9%, while revenue growth is forecasted at 10%.
Rating and Target Price Update: Nomura has reduced its non-GAAP net profit forecasts for TENCENT for 2026-27 by 3% and 1%, respectively, while maintaining a Buy rating but lowering the target price from HKD775 to HKD727.
4.5
03-23aastocksHSI Declines by 488 Points as Commodity Stocks Fall; CHIFENG GOLD Drops 19%
Market Opening: The HSI opened 1.9% lower at 24,789, with the HSCEI down 1.6% at 8,433 and HSTECH down 1.9% at 4,780.
Tech Stock Performance: Major tech stocks like TENCENT, BABA-W, and JD-SW experienced declines, with short selling ratios indicating significant market pressure.
Commodities Stocks Decline: Commodities stocks, including ZHAOJIN MINING and CHINAGOLDINTL, saw notable decreases, despite some companies reporting increased profits.
Short Selling Trends: A variety of stocks faced heavy short selling, with ratios for several companies exceeding 15%, reflecting bearish sentiment in the market.
Money Flow
Over the past 66 trading days, overall net money flow is -439.11M, with retail investors contributing 451.16M and major investors adding -600.02M.
Net Buy $ Volume
Net Sell $ Volume
G Sachs
G Sachs
upgrade
2026-04-02
New
Reason
G Sachs maintains a positive outlook on the cloud and data center sectors due to growth in enterprises and AI technologies, which are driving demand for AI tokens and improving pricing power for cloud services. The bank has also upgraded e-commerce and mobility sectors, citing attractive valuations and positive trends, while gaming and entertainment are ranked third due to increased user engagement and advertising revenue growth.
G Sachs
Price Target
2026-04-02
upgrade
New
G Sachs maintains a positive outlook on the cloud and data center sectors due to growth in enterprises and AI technologies, which are driving demand for AI tokens and improving pricing power for cloud services. The bank has also upgraded e-commerce and mobility sectors, citing attractive valuations and positive trends, while gaming and entertainment are ranked third due to increased user engagement and advertising revenue growth.
JPMorgan
JPMorgan
Overweight
maintain
HKD690
2026-03-25
Reason
JPMorgan maintains an Overweight rating on Tencent due to its strong AI investment strategy and potential for medium-term revenue growth, particularly in advertising and gaming. However, they anticipate limited short-term stock price support due to lowered earnings forecasts and a market preference for immediate earnings visibility over longer-term AI potential.
JPMorgan
Overweight
Price Target
HKD690
2026-03-25
maintain
JPMorgan maintains an Overweight rating on Tencent due to its strong AI investment strategy and potential for medium-term revenue growth, particularly in advertising and gaming. However, they anticipate limited short-term stock price support due to lowered earnings forecasts and a market preference for immediate earnings visibility over longer-term AI potential.
UBS
Buy
initiated
{"JD-SW": "$187", "BIDU-SW": "$175", "CATL": "$500", "FUYAO GLASS": "$93", "HUATAI SECURITIES": "$30
2026-03-24
Reason
UBS assigned a Buy rating to its most popular model portfolio of Chinese stocks based on fundamental analysis, indicating a positive outlook for these stocks.
UBS
Buy
Price Target
{"JD-SW": "$187", "BIDU-SW": "$175", "CATL": "$500", "FUYAO GLASS": "$93", "HUATAI SECURITIES": "$30
2026-03-24
initiated
UBS assigned a Buy rating to its most popular model portfolio of Chinese stocks based on fundamental analysis, indicating a positive outlook for these stocks.
Jefferies
Jefferies
initiated
$795
2026-03-23
Reason
The analyst rating for TENCENT (00700.HK) was set to "Buy" with a target price of HKD 795 due to several key factors highlighted in the Jefferies report. These include:
1. Investments in AI: TENCENT is focusing on significant investments in AI, which encompass training computation resources, AI talent, user acquisition, and inference. This strategic direction is expected to enhance the company's capabilities and market position.
2. Increased Capital Expenditure: The report indicates that capital expenditures (capex) are projected to advance significantly compared to the previous year, suggesting a commitment to growth and innovation.
3. Focus on the Chinese Market: TENCENT's emphasis on the Chinese market's state-of-the-art (SOTA) model, particularly with the HY 3.0 upgrade, positions the company well for future developments and competitiveness.
4. Proven Track Record: The company has a history of making investments that eventually become profitable, which instills confidence in its future financial performance.
5. Positive Impact on Gaming and Advertising Revenue: The report notes that AI is positively influencing TENCENT's gaming business, and advertising revenue showed steady growth in the first quarter, indicating a healthy revenue stream.
These factors collectively contribute to the positive outlook and the "Buy" rating from analysts.
Jefferies
Price Target
$795
2026-03-23
initiated
The analyst rating for TENCENT (00700.HK) was set to "Buy" with a target price of HKD 795 due to several key factors highlighted in the Jefferies report. These include:
1. Investments in AI: TENCENT is focusing on significant investments in AI, which encompass training computation resources, AI talent, user acquisition, and inference. This strategic direction is expected to enhance the company's capabilities and market position.
2. Increased Capital Expenditure: The report indicates that capital expenditures (capex) are projected to advance significantly compared to the previous year, suggesting a commitment to growth and innovation.
3. Focus on the Chinese Market: TENCENT's emphasis on the Chinese market's state-of-the-art (SOTA) model, particularly with the HY 3.0 upgrade, positions the company well for future developments and competitiveness.
4. Proven Track Record: The company has a history of making investments that eventually become profitable, which instills confidence in its future financial performance.
5. Positive Impact on Gaming and Advertising Revenue: The report notes that AI is positively influencing TENCENT's gaming business, and advertising revenue showed steady growth in the first quarter, indicating a healthy revenue stream.
These factors collectively contribute to the positive outlook and the "Buy" rating from analysts.
BofA Securities
BofA Securities
Buy
maintain
$780
2026-03-23
Reason
The analyst rating from BofA Securities for TENCENT (00700.HK) is reiterated at "Buy" due to several positive factors. The report highlights that TENCENT's 4Q25 results have alleviated concerns regarding full-year earnings estimates. Additionally, there is a clear path for valuation re-rating, driven by the upcoming launch of Hunyuan 3.0, further upgrades to large language models (LLMs), increased capital expenditure, and anticipated growth in cloud revenue over the next 6-12 months. The introduction of Weixin Agent in the next 9-18 months also contributes to the positive outlook. Despite lowering the non-IFRS net profit forecasts for 2026 and 2027 by 4% and 3% respectively, the target price remains at $780, supporting the "Buy" rating.
BofA Securities
Buy
Price Target
$780
2026-03-23
maintain
The analyst rating from BofA Securities for TENCENT (00700.HK) is reiterated at "Buy" due to several positive factors. The report highlights that TENCENT's 4Q25 results have alleviated concerns regarding full-year earnings estimates. Additionally, there is a clear path for valuation re-rating, driven by the upcoming launch of Hunyuan 3.0, further upgrades to large language models (LLMs), increased capital expenditure, and anticipated growth in cloud revenue over the next 6-12 months. The introduction of Weixin Agent in the next 9-18 months also contributes to the positive outlook. Despite lowering the non-IFRS net profit forecasts for 2026 and 2027 by 4% and 3% respectively, the target price remains at $780, supporting the "Buy" rating.
UBS
Buy
maintain
$780
2026-03-23
Reason
The analyst rating from UBS for TENCENT (00700.HK) is based on several key reasons:
1. Long-term Growth Opportunities: UBS believes that TENCENT is well-positioned to capture long-term growth opportunities, particularly in the field of AI development.
2. Underestimated Potential: The broker thinks that the solid performance of TENCENT's core business and the long-term upside potential of AI are currently underestimated by the market.
3. Valuation: TENCENT's projected PE ratio of 14x suggests that the stock may be undervalued, providing a favorable investment opportunity.
4. Strengths in AI Development: TENCENT's existing platforms, such as WeChat and QQ, are seen as natural interfaces for AI applications, which enhances its capabilities in this area.
5. Upcoming Advancements: The anticipated launch of the Hunyuan 3.0 model is expected to represent a significant advancement in TENCENT's AI capabilities, addressing current bottlenecks in model capabilities, data privacy, and monetization challenges.
Based on these factors, UBS has reiterated its rating of "Buy" for TENCENT and set a target price of $780.
UBS
Buy
Price Target
$780
2026-03-23
maintain
The analyst rating from UBS for TENCENT (00700.HK) is based on several key reasons:
1. Long-term Growth Opportunities: UBS believes that TENCENT is well-positioned to capture long-term growth opportunities, particularly in the field of AI development.
2. Underestimated Potential: The broker thinks that the solid performance of TENCENT's core business and the long-term upside potential of AI are currently underestimated by the market.
3. Valuation: TENCENT's projected PE ratio of 14x suggests that the stock may be undervalued, providing a favorable investment opportunity.
4. Strengths in AI Development: TENCENT's existing platforms, such as WeChat and QQ, are seen as natural interfaces for AI applications, which enhances its capabilities in this area.
5. Upcoming Advancements: The anticipated launch of the Hunyuan 3.0 model is expected to represent a significant advancement in TENCENT's AI capabilities, addressing current bottlenecks in model capabilities, data privacy, and monetization challenges.
Based on these factors, UBS has reiterated its rating of "Buy" for TENCENT and set a target price of $780.
BofAS
Buy
downgrade
$234
2026-03-23
Reason
The analyst rating from CICC regarding the impact of ByteDance's AI video generation model Seedance 2.0 is based on several key observations:
1. Leading Capabilities: Seedance 2.0 demonstrates systematic leading capabilities in areas such as full-modal input/output and camera/narrative consistency, which positions it as a significant player in the AI-generated content (AIGC) space.
2. Limited Impact on Mainstream Platforms: CICC believes that while AIGC tools like Seedance 2.0 will enhance content creation, they will not drastically alter the landscape of mainstream online content platforms. This is attributed to the difference in usage scenarios—AIGC tools are more aligned with active search, whereas mainstream platforms focus on passive consumption.
3. Increased Efficiency and Demand: The report suggests that if AIGC tools can significantly improve human work efficiency, it could lead to increased entertainment time. This, in turn, may stabilize oversupplied content areas like short videos while creating new demand in undersupplied areas such as long videos and music.
4. Potential for New Platforms: The emergence of AIGC tools may lead to the creation of new platforms, particularly in sectors that are currently underserved, indicating a potential for growth and innovation in the industry.
Overall, the rating reflects a positive outlook on the potential of AIGC tools to enhance content creation while recognizing the existing dynamics of the content consumption landscape.
BofAS
Buy
Price Target
$234
2026-03-23
downgrade
The analyst rating from CICC regarding the impact of ByteDance's AI video generation model Seedance 2.0 is based on several key observations:
1. Leading Capabilities: Seedance 2.0 demonstrates systematic leading capabilities in areas such as full-modal input/output and camera/narrative consistency, which positions it as a significant player in the AI-generated content (AIGC) space.
2. Limited Impact on Mainstream Platforms: CICC believes that while AIGC tools like Seedance 2.0 will enhance content creation, they will not drastically alter the landscape of mainstream online content platforms. This is attributed to the difference in usage scenarios—AIGC tools are more aligned with active search, whereas mainstream platforms focus on passive consumption.
3. Increased Efficiency and Demand: The report suggests that if AIGC tools can significantly improve human work efficiency, it could lead to increased entertainment time. This, in turn, may stabilize oversupplied content areas like short videos while creating new demand in undersupplied areas such as long videos and music.
4. Potential for New Platforms: The emergence of AIGC tools may lead to the creation of new platforms, particularly in sectors that are currently underserved, indicating a potential for growth and innovation in the industry.
Overall, the rating reflects a positive outlook on the potential of AIGC tools to enhance content creation while recognizing the existing dynamics of the content consumption landscape.
Nomura
Nomura
Buy
to
Buy
downgrade
$775 -> $727
2026-03-23
Reason
The analyst rating for TENCENT remains a "Buy" despite a reduction in the target price from HKD775 to HKD727. This rating is supported by the company's plans to significantly increase investment in new AI products, with a budget exceeding RMB36 billion, which is expected to enhance its long-term growth potential. Additionally, the cloud business is projected to see accelerated revenue growth. However, the forecast includes a slight decline in the non-GAAP operating profit margin due to these increased investments, leading to a slowdown in operating profit growth compared to revenue growth. Overall, the positive outlook on AI investments and cloud revenue growth underpins the "Buy" rating.
Nomura
Buy
to
Buy
Price Target
$775 -> $727
2026-03-23
downgrade
The analyst rating for TENCENT remains a "Buy" despite a reduction in the target price from HKD775 to HKD727. This rating is supported by the company's plans to significantly increase investment in new AI products, with a budget exceeding RMB36 billion, which is expected to enhance its long-term growth potential. Additionally, the cloud business is projected to see accelerated revenue growth. However, the forecast includes a slight decline in the non-GAAP operating profit margin due to these increased investments, leading to a slowdown in operating profit growth compared to revenue growth. Overall, the positive outlook on AI investments and cloud revenue growth underpins the "Buy" rating.
Daiwa
Daiwa
Buy
maintain
$725
2026-03-20
Reason
The analyst rating for TENCENT (00700.HK) was reiterated as "Buy" by Daiwa due to several positive factors highlighted in their report. The key reasons for this rating include:
1. Solid 4Q25 Results: TENCENT delivered strong quarterly results, particularly in its international gaming and cloud business, which exceeded market expectations.
2. Gross Profit Margin Expansion: The company's overall gross profit margin increased to 56%, attributed to improved business mix and operating leverage, despite higher investments in AI.
3. Increased AI Investments: TENCENT significantly ramped up its AI investments, which are beginning to enhance its core businesses (gaming, advertising, cloud, and fintech) by improving user engagement and monetization capabilities.
4. Revised EPS Forecasts: Due to the higher gross profit margin, Daiwa raised its earnings per share (EPS) forecasts for 2026 and 2027 by 4%.
5. Target Price Maintenance: The target price was maintained at $725, reflecting a projected price-to-earnings (PE) ratio of 20.1x for 2026.
These factors collectively support a positive outlook for TENCENT, justifying the "Buy" rating.
Daiwa
Buy
Price Target
$725
2026-03-20
maintain
The analyst rating for TENCENT (00700.HK) was reiterated as "Buy" by Daiwa due to several positive factors highlighted in their report. The key reasons for this rating include:
1. Solid 4Q25 Results: TENCENT delivered strong quarterly results, particularly in its international gaming and cloud business, which exceeded market expectations.
2. Gross Profit Margin Expansion: The company's overall gross profit margin increased to 56%, attributed to improved business mix and operating leverage, despite higher investments in AI.
3. Increased AI Investments: TENCENT significantly ramped up its AI investments, which are beginning to enhance its core businesses (gaming, advertising, cloud, and fintech) by improving user engagement and monetization capabilities.
4. Revised EPS Forecasts: Due to the higher gross profit margin, Daiwa raised its earnings per share (EPS) forecasts for 2026 and 2027 by 4%.
5. Target Price Maintenance: The target price was maintained at $725, reflecting a projected price-to-earnings (PE) ratio of 20.1x for 2026.
These factors collectively support a positive outlook for TENCENT, justifying the "Buy" rating.
Macquarie
Macquarie
Neutral
downgrade
$569 -> $559
2026-03-19
Reason
The analyst rating for TENCENT was kept at Neutral by Macquarie due to the belief that there is limited short-term profit upside. They expect the share price to remain range-bound until there are substantial breakthroughs in AI-led initiatives. Despite healthy 4Q25 results, the lowered adjusted EPS forecasts for 2026 and 2027, along with a reduced target price, contributed to this cautious outlook.
Macquarie
Neutral
Price Target
$569 -> $559
2026-03-19
downgrade
The analyst rating for TENCENT was kept at Neutral by Macquarie due to the belief that there is limited short-term profit upside. They expect the share price to remain range-bound until there are substantial breakthroughs in AI-led initiatives. Despite healthy 4Q25 results, the lowered adjusted EPS forecasts for 2026 and 2027, along with a reduced target price, contributed to this cautious outlook.
Valuation Metrics
Forward PE
5Y Average PE
19.46
Current PE
18.50
Overvalued PE
26.52
Undervalued PE
12.40
Forward EV/EBITDA
5Y Average EV/EBITDA
14.69
Current EV/EBITDA
14.05
Overvalued EV/EBITDA
18.20
Undervalued EV/EBITDA
11.18
Forward PS
5Y Average PS
5.21
Current PS
6.26
Overvalued PS
6.28
Undervalued PS
4.13
Financials
AI Analysis
Annual
Quarterly
Trading Trends
Daily
Monthly
Buyback
Short Selling
People Also Watch