Macquarie: Raised TENCENT (00700) target price to HKD 676, rating "outperforming the market"

Morgan Stanley released a research report stating that it is expected that TENCENT (00700) will have a healthy outlook for the first quarter of this year, supported by its advantages in the gaming business and market share in advertising revenue. It is expected that adjusted net profit for the period will increase by 24% year-on-year to 62.1 billion RMB. The company is actively integrating artificial intelligence into its ecosystem, improving advertising technology to drive better conversion rates and support further monetization. The bank believes that the company's improved cost structure will continue to increase overall gross profit, raising profit forecasts for the next two years by 3% and 2% respectively, and raising the target price from 651 HKD to 676 HKD, maintaining a "outperform" rating.