BOC International: Raises Tencent Holdings Limited target price to HKD 705, rating "Buy"

BOC International released a research report stating that Tencent's revenue in the second quarter increased by 15% year-on-year to RMB 184.5 billion, with a gross margin of 56.9%, and adjusted operating profit rose by 18% year-on-year to RMB 69.2 billion, all exceeding expectations. The firm believes that the company is gradually benefiting from artificial intelligence, demonstrating the sustained, stable, and high-quality growth of its core business segments and the gradual commercialization of artificial intelligence, while fully utilizing various integrated usage scenarios of the WeChat ecosystem, as well as a diverse range of artificial intelligence products and features. The firm stated that it has raised its target price to HKD 705, with a rating of "Buy."