JPMorgan: Tencent's Q1 performance is stable with a target price of HKD 600

Jin10 data reported on May 15, citing a research report from JPMorgan, indicates that Tencent (00700.HK) had stable performance in the first quarter, with revenue from games and online advertising accelerating to over 20%, demonstrating the group’s unique advantages that enable it to achieve sustainable profit rise. Furthermore, although increased capital expenditure in the second half of the year will impact profitability, the group’s earnings per share growth rate in the first quarter still exceeds revenue growth, and it is expected that its stock price will have a positive reaction in the short term. The bank set a target price of 600 HKD for Tencent, with a rating of “buy.”