Lates News

Goldman Sachs released a research report stating that Tencent Holdings' second quarter performance was strong, recording the fastest revenue growth in four years and the highest gross profit margin in history. This has reinforced the firm's view of Tencent as one of the most advantageous companies in the Chinese internet industry, leveraging its unique WeChat ecosystem and global gaming assets to drive growth across all business lines (gaming, advertising, fintech, cloud, e-commerce) through the application of artificial intelligence. Two major high-quality revenue sources (gaming and marketing services) have maintained a year-on-year growth of 20% or above for two consecutive quarters. Goldman Sachs has raised Tencent's revenue and earnings per share forecasts for 2025 to 2027 by 1% to 6% due to the stability improvement of its gaming business as a platform, the extended growth runway for marketing services (advertising), the recovery of fintech growth, and the accelerated growth of cloud/e-commerce driving continued operational leverage. Goldman Sachs has raised Tencent's 12-month target price from 658 Hong Kong dollars to 701 Hong Kong dollars, maintaining a "buy" rating and continuing to be the firm's core investment choice in the Chinese internet industry, with gaming being the preferred sub-industry.