Tencent Holdings Likely to Extend Earnings Momentum

Tencent Holdings is likely to extend the second quarter’s solid earnings momentum into the coming months thanks to a recently launched product for its advertising clients and an expected new game release, Citi says, while it keeps the stock at buy with an unchanged target of HK$649. The new product allows Tencent’s clients to place advertisements across its platforms, which increases efficiency, provides more targeted services and attracts more clients as well as ad income, Citi says. The U.S. bank expects Tencent to release the highly anticipated DNF Mobile game next month, which can offer a strong boost to 2H revenue. Shares ended 2.0% lower at HK$510.