Yamato: Reiterates Tencent Holdings (00700)'s “Buy” Rating, Optimistic About International Game Expansion

The Zhitong Finance App learned that Yamato released a research report stating that it reiterated its “buy” rating for Tencent Holdings (00700). The target price is HK$750, which corresponds to the predicted price-earnings ratio of 20.6 times in 2026, and believes that the current major potential downside risk is that the game's performance falls short of expectations.

The bank recently attended Tencent's PUBG Mobile e-sports event and discussed the progress of the game business with management. They believe that Tencent is exporting the best practices of “game as a service” to the world. The integration of Chinese and foreign elements can enhance the appeal of domestic games, and is optimistic about the pace of the company's international game expansion and commercialization. The bank believes that Tencent has unrivaled AI and cloud capabilities, and that AI plays a critical role throughout the game lifecycle.