CICC has released a research report reaffirming its 2025-2026 revenue and profit forecasts for Tencent Holdings, maintaining an 'Outperform' rating and a target price of HK$600. The report highlights that Tencent's gaming segment continues to thrive, while its advertising business demonstrates steady growth. Specifically, the report anticipates a year-on-year increase of 16% in gaming revenue and 17% in advertising revenue for the second quarter of 2025. Additionally, while acknowledging that Tencent's investments in AI are still in a pre-commercialization phase, which could potentially elevate costs, the report underscores that this high-quality growth trajectory will ultimately bolster gross margins. Adjusted operating profit and net profit are projected to grow by 14% and 11%, respectively, in the second quarter of 2025. Potential risks include macroeconomic volatility, shifts in US regulatory policies, and escalating costs.