---
title: "ZhaoYin International: Expects Tencent Holdings' first-quarter performance to be stable, market reaction to AI investment is excessive"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/282492056.md"
description: "CMB International released a research report stating that after the performance announcement in the fourth quarter of last year, the market overreacted to potential AI threats and the short-term profit margin pressure brought by AI investments, making Tencent Holdings' current valuation attractive; maintaining a target price of HKD 750 and a \"Buy\" rating. The firm expects Tencent's performance in the first quarter of this year to be robust, with total revenue expected to grow by 10% year-on-year to RMB 198.4 billion (same below), and non-International Financial Reporting Standards net profit expected to grow by 9% year-on-year to RMB 66.8 billion, mainly driven by strong core gaming and marketing promotion businesses, although partially offset by increased AI investments. The firm pointed out that Tencent's core business continues to benefit from AI and maintains strong growth momentum. Although AI investments impact short-term profit margins, they also create short-term catalysts and can empower core businesses in the long run"
datetime: "2026-04-13T05:58:05.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/282492056.md)
  - [en](https://longbridge.com/en/news/282492056.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/282492056.md)
---

# ZhaoYin International: Expects Tencent Holdings' first-quarter performance to be stable, market reaction to AI investment is excessive

According to Zhitong Finance APP, CMB International released a research report stating that after the performance announcement in the fourth quarter of last year, the market overreacted to potential AI threats and the short-term profit margin pressure brought by AI investments, making the current valuation of Tencent Holdings Limited (00700) attractive; maintaining a target price of HKD 750 and a "Buy" rating.

The bank expects Tencent's performance in the first quarter of this year to be robust, with total revenue expected to grow by 10% year-on-year to RMB 198.4 billion, and non-International Financial Reporting Standards net profit expected to grow by 9% year-on-year to RMB 66.8 billion, mainly driven by strong core gaming and marketing businesses, although partially offset by increased AI investments. The bank pointed out that Tencent's core business continues to benefit from AI and maintains strong growth momentum. Although AI investments impact short-term profit margins, they also create short-term catalysts and can empower core businesses in the long run

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