Daiwa has issued a research report, reaffirming its 'Buy' stance on Tencent Holdings, with a target price pegged at HK$750. This valuation reflects a 20.6 times projected price-to-earnings ratio for the year 2026. The report highlights that the primary risk factor for Tencent lies in its gaming segment underperforming relative to market expectations. Daiwa attended Tencent's PUBG Mobile esports tournament and engaged in in-depth discussions with the company's management regarding the advancement of its gaming operations. The firm expresses a positive outlook on Tencent's international gaming expansion and the speed of its monetization efforts. Daiwa notes that Tencent is effectively exporting its 'Gaming as a Service' expertise on a global scale, and the fusion of Chinese and international cultural elements can significantly boost the allure of its domestic game offerings. Furthermore, Tencent boasts robust AI and cloud computing capabilities, with AI playing a pivotal role across every stage of the game development and operation lifecycle.