Changes in Hong Kong stocks | Tencent (00700) fell more than 2% to hit the HK$400 mark. Institutions expect short-term depreciation to still drag down financial performance

The Zhitong Finance App learned that Tencent Holdings (00700) fell more than 2% in the afternoon, hitting the HK$400 mark. The cumulative decline during the year had already exceeded 30%. As of press release, it decreased by 2.29% to HK$401, with a turnover of HK$7.884 billion.

Haitong International released a research report saying that Tencent's revenue for the third quarter is expected to be RMB 21.2 billion, up 9% year on year; adjusted operating profit of RMB 68.8 billion, down 5% year on year, mainly due to AI-related depreciation and product investment reflected in revenue costs and operating expenses.

The bank pointed out that AI is still Tencent's strategic investment focus, and short-term depreciation will still drag down financial performance, but Tencent favors disciplined deployment rather than automatically speeding up spending quarterly. The bank slightly lowered its target price by 2% to HK$470 to reflect the lower earnings per share forecast and maintain the “better than the market” rating.