Komo: Give Tencent (00700) an “gain” rating with a target price of HK$750

The Zhitong Finance App learned that J.P. Morgan Chase released a research report saying that after recently communicating with Tencent (00700) game and cloud business management, it was pointed out that the company's core advantage does not rely on a single popular product or one-time customer acquisition, but rather that it has a replicable business model that can achieve localization and large-scale expansion on a global scale. The bank is optimistic about its growth cycle and gives it an “Overweight” rating, with a target price of HK$750.

The bank believes that through the “three-engine” model of publishing, developing, and investing in game studios, Tencent is expected to occupy an important position in this rapidly growing game field. Taking shooter games as an example, Tencent management expects the market to reach 38 billion US dollars in 2025. As a “target with multi-year profitability growth capabilities,” Tencent is improving business efficiency and quality through AI technology and global expansion, rather than just focusing on cost reduction or short-term returns.