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<Research>UBS Reiterates TENCENT as Top Pick & Key Call; AI Potential Expected to Unleash
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TENCENT (00700.HK) has recently undergone an organizational restructuring in its AI division and accelerated talent acquisition, demonstrating its firm commitment to AI, UBS wrote in its research report.

During the 2026 Greater China Conference in which TENCENT also participated, management noticed the immense opportunities presented by agentic AI. Compared to manual execution, the key to successful AI applications on the ToC end lies in a comprehensive and consistent understanding of users, which could improve the efficiency of agentic AI in executing tasks on behalf of users.

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In UBS' opinion, TENCENT's WeChat holds a unique advantage with its large user base, rich application scenarios, and flourishing mini-program ecosystem. The broker reiterated TENCENT as its top pick and key call, with a rating of Buy and a target price of HKD780.
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