Analyst: Tencent's debt indicators are expected to remain stable.

CreditSights analysts Stephanie Sim and Pius Xue stated in a report that they expect Tencent's debt metrics to remain stable over the next 12 months. They predict that the company's revenue growth will continue to be resilient, supported by healthy growth in its online advertising and gaming businesses. These analysts added, "We are positive on the company's healthy balance sheet, strong free cash flow generation, and robust liquidity." They noted that by the end of this year, Tencent's cash may exceed its debt levels. However, they anticipate a slight but manageable decline in EBITDA margins due to increased AI-related expenses. CreditSights maintains an "Outperform the Market" rating on Tencent and believes it is a stable long-term investment choice in the Asian and Chinese markets. The company is also seen as a good hedge against American AI stocks.