<div id="readability-page-1"><div><p>CICC issued a report stating that TENCENT (00700.HK)<span> </span><span> +4.100 (+0.901%)  </span> <span> Short selling $607.81M; Ratio 10.170%  </span>  reported a 1Q Non-IFRS net profit up 11% YoY, in line with market expectations. Affected by revenue deferrals, 1Q revenue rose 9% YoY, below market expectations.</p><p>The report noted that TENCENTs 1Q game gross receipts recorded solid growth, with evergreen titles reaching new highs. As the Spring Festival fell later this year, part of game gross receipts and revenue sharing was deferred to subsequent quarters. The broker expects domestic game revenue to grow 12% YoY in 2Q26 and overseas game revenue to increase 10% YoY.</p><p>CICC said TENCENTs 1Q advertising revenue growth accelerated, rising 20% YoY, and projected 2Q26 advertising revenue to increase 17% YoY. The broker estimated 1Q financial business revenue rose 7% YoY, better than previous expectations, driven by improved volume and pricing in commercial payments and steady growth in wealth management. 1Q enterprise services revenue increased 20% YoY, benefiting from simultaneous volume and pricing growth in cloud services. The broker forecast 2Q26 enterprise services revenue to rise 25% YoY and financial and enterprise services revenue to grow 10% YoY.</p><p>The report considered TENCENTs AI investment to be proactive and manageable. At end-April, TENCENT open-sourced and released the Hunyuan 3.0 preview LLM, balancing practicality and cost-effectiveness. It has been deployed across 131 internal products to enable collaborative iteration, with plans to evolve toward models with larger parameters. Management believes WeChat/QQ/WeCom serve as natural control interfaces for Agentic AI. In the future, if mini program code is converted into AI skills, it could build a differentiated ecosystem moat. Excluding the impact of new AI products, 1Q Non-IFRS operating profit increased 17% YoY, indicating resilient profitability in core businesses and providing sufficient cash flow to support AI investment. The broker expects 2Q26 adjusted operating profit and adjusted net profit to rise 7% YoY and 9% YoY, respectively.</p><p>CICC maintained its revenue and Non-IFRS net profit forecasts for this year and next. It reiterated an Outperform rating and kept the TP at HKD666, corresponding to a forecast Non-IFRS PE of 20x for this year. (da/a)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-15 12:25.)</p></div></div>

GAMR

ESPO

HERO

BNGE

516010

159869

<p>CICC reported that TENCENT's 1Q Non-IFRS net profit rose 11% YoY, meeting expectations, while revenue increased 9% YoY, below forecasts. Game receipts grew, with advertising revenue up 20% YoY. TENCENT's AI investments are seen as proactive, with plans for further development. CICC maintains its revenue and profit forecasts, reiterating an Outperform rating with a target price of HKD666.</p>

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TENCENT

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Tencent Holdings Limited

CICC: TENCENT  1Q Non-IFRS Net Profit In Line; Active and Controllable AI Investment