[JPMorgan: Tencent Remains the Highest-Quality Compound Growth Stock in China's Internet Sector, Reiterates 'Overweight' Rating] Odaily Planet Daily News – JPMorgan released a report reiterating its 'Overweight' rating on Tencent Holdings (00700.HK), maintaining a target price of HKD 690. The firm believes Tencent remains the highest-quality compound growth stock in China's internet sector, with enduring user engagement, continuously improving gaming and advertising monetization capabilities, strong profit margins and balance sheet strength, as well as AI options with tangible monetization pathways. The report noted that due to Tencent's increased AI investments and expected depreciation starting in the second half of this year, the firm has lowered its forecast for Tencent's FY2026 Non-IFRS earnings per share by 5% to RMB 28.47 and raised its FY2026 capital expenditure forecast to RMB 200 billion. However, the firm emphasized that these adjustments reflect heavier AI investments and depreciation rather than a deterioration in Tencent's existing core businesses. The firm expects second-quarter revenue to grow approximately 9% year-on-year, with value-added services revenue increasing by 5% to 6%, gaming revenue rising by 9% to 10%, marketing services revenue growing by 18% to 19%, and fintech revenue increasing by about 5%, broadly in line with market expectations. (Jin10)