Guosen Securities has reaffirmed its 'Outperform' rating for Tencent Holdings, while revising downward its adjusted net profit projections for the 2026-2028 period, primarily due to anticipated AI-related investments and amortization considerations. The firm projects that Tencent's revenue will surge to RMB 202.4 billion in Q2 2026, marking a 10% year-on-year increase. Non-IFRS operating profit is forecasted at RMB 75.7 billion, reflecting a 9% year-on-year rise. Net profit attributable to the parent company is expected to reach RMB 66 billion, up 5% year-on-year, with a gross profit margin of 57%. However, expenses are projected to climb 21% year-on-year.

Notably, the Tencent Hunyuan 3.0 model has attained performance parity with leading open-source models, despite its relatively modest parameter count. Boasting 295 billion parameters in total, with 21 billion actively engaged and a context length of 256K, the model has demonstrated significant post-training quality enhancements. Tencent is ramping up its investment in AI talent to bolster its model research capabilities, a move that bodes well for the company's overall ecosystem prospects.