Changes in Hong Kong stocks | Tencent Holdings (00700) rose nearly 2%, institutions expect the company to adopt moderate capital expenditure growth in the future, and the gaming business is still the core

The Zhitong Finance App learned that Tencent Holdings (00700) rose nearly 2%. As of press release, it had risen 1.72% to HK$474.4, with a turnover of HK$11.08 billion.

According to the news, Bank of China International released a research report stating that it is still too early to talk about capital expenditure levels after 2027. It is expected that after 2027, Tencent will adopt a capital expenditure plan that will increase moderately compared to this year, unless C-side AI applications prove to generate large-scale revenue and a good profit model, or the core social ecosystem and main business are swayed by AI rivals. The bank believes that Tencent will now prioritize high-end computing power resources on the mixed-element model. The AI assistant “Xiaowei” will not focus on advancing the project in the short term due to potential computing power consumption, compliance factors, and lack of effective commercialization methods.

Bank of China International said that Tencent has continued to increase investment in artificial intelligence in recent years. The bank predicts that the company's capital and cash expenditure will reach 160 to 180 billion yuan in 2026 (depending on supply chain dynamics), but believes that Tencent will maintain a cautious investment pace to maintain business flexibility. The bank believes that Tencent's core business, especially games, will continue to be resilient in the next few quarters, benefiting from the Evergreen game portfolio and rich game pipeline.