CICC: Maintains Tencent's "outperforming the industry" rating, the landing of WeChat Agent is expected to bring valuation recovery.

China Gold released a research report stating that Tencent Holdings is currently at the valuation bottom since 2021, and with the implementation of WeChat Agent and other AI strategies, it is expected to gradually show results and bring about valuation improvement. The report points out that the core capabilities of the "Little Micro" beta version include information understanding, task execution, and application generation. The core problem it solves is likely an extension of the existing WeChat scenes, that is, how to better manage social, life, and work interactions. Looking ahead, the firm believes that the directions in which it could possibly strengthen include knowledge base daily management efficiency tools, cross-application complex scenarios, UGC mini program ecosystem, and pushing the Agent from search to recommendation. The firm believes that the potential commercial space of the WeChat ToC Agent is foreseeable, the core of which lies in the current tens of billions of yuan GMV transaction ecosystem of WeChat mini programs. Assuming the Agent can become a centralized entry point for distributing some services, it is expected to help WeChat increase its actual commission rate in the existing transaction ecosystem. The firm maintains its profit forecasts for Tencent Holdings for the fiscal years 2026 and 2027 unchanged, and maintains a "outperform industry" rating with a target price of 666 Hong Kong dollars, corresponding to a 20 times 2026 forecast Non-IFRS price-to-earnings ratio.