According to a research report released by GF Securities, Tencent Holdings' advertising and gaming business continues to increase the operating leverage of its main business. Revenue is expected to reach 825.5 billion yuan/904.2 billion yuan in 26-27, up 9.8%/9.5% year on year; increased AI capital expenditure will drive up R&D costs in the second half of the year or slow down short-term operating profit growth. The adjusted net profit for 26-27 is expected to be 267.9 billion yuan and 281.7 billion yuan, up 3.2% and 5.2% year on year. Based on 26 years' revenue and performance, the reasonable value is HK$668.49/share based on SOTP. Maintain a “buy” rating.

According to a research report released by GF Securities, Tencent Holdings' advertising and gaming business continues to increase the operating leverage of its main business. Revenue is expected to reach 825.5 billion yuan/904.2 billion yuan in 26-27, up 9.8%/9.5% year on year; increased AI capital expenditure will drive up R&D costs in the second half of the year or slow down short-term operating profit growth. The adjusted net profit for 26-27 is expected to be 267.9 billion yuan and 281.7 billion yuan, up 3.2% and 5.2% year on year. Based on 26 years' revenue and performance, the reasonable value is HK$668.49/share based on SOTP. Maintain a “buy” rating.