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2025-07-29 14:34:35
【Citi: Raises Tencent's target price to HK$699, expects solid second-quarter results】 Citi issued a report stating that Tencent Holdings will announce its second-quarter 2025 results on August 13, and expects solid results. It estimates that non-GAAP net profit will increase by 4.9% year-on-year to 60.1 billion yuan, and revenue and profit will meet or exceed the bank's and market consensus expectations. The gaming business has potential upside due to the contribution of new games and deferred revenue. Citi expects that in the third quarter of 2025, Tencent's gaming business will have stable revenue supported by strong seasonal factors, new game releases and content upgrades. It also expects Tencent to focus on the latest progress and updates of AI models (such as the Hunyuan 3D world model) and Yuanbao's new features, new game pipelines, WeChat search momentum and macroeconomic outlook. Citi raised its target price from HK$695 to HK$699, corresponding to a forecast price-to-earnings ratio of 24.4 times and 22.3 times for this year and next year respectively, and maintained a "buy" rating and core holding preferred status.
