Morgan Stanley: Tencent's first quarter performance exceeds expectations in all aspects, rating "Overweight".

On May 15, Jin10 reported that Morgan Stanley released a report indicating that Tencent (00700.HK) exceeded expectations across the board in its first-quarter results, with a year-on-year revenue increase of 13%, surpassing market expectations by 3%. Tencent’s first-quarter Non-IFRS net profit rose by 22%, with Morgan Stanley indicating it exceeded market expectations by 4%. This year, the company repurchased HKD 17.1 billion in shares in the first quarter, with a buyback target of over HKD 80 billion for the year. Capital expenditure in the first quarter was RMB 27.5 billion, compared to RMB 36.5 billion in the last quarter of last year, with full-year capital expenditure guidance set at a low double-digit percentage of total revenue. Morgan Stanley maintained an “Overweight” rating on Tencent, with a target price of HKD 630.