Goldman Sachs: Increased confidence in Tencent, target price HKD 701

Goldman Sachs released a research report stating that confidence in Tencent's prospects has increased. It believes that Tencent, through investments, is continuously deepening its moat and, leveraging its unique WeChat ecosystem and global gaming assets, could become one of the companies in the Chinese internet industry that benefits the most from AI application development. It has given a "Buy" rating with a target price of HKD 701. Recently, Tencent held the 2025 Tencent Global Digital Ecosystem Summit in Shenzhen, where management emphasized that efficiency improvements driven by intelligence and scale expansion driven by globalization have become the two main growth engines for Tencent Cloud and its ecosystem partners. They also revealed that over the past year, more than 30 mixed models have been released through iterative foundational models, and it is expected that AI applications in gaming, marketing services, native applications, and internal productivity improvements could drive geometric business growth. Management stated that Tencent Cloud will strengthen its expansion in overseas markets, with a compound annual growth rate of high double-digit percentages in overseas market revenue over the past three years, and the number of international clients has doubled year-on-year