Tencent's Aggressive Buyback Plans Exceed Expectations, Says BofA

BofA Securities recently released a report based on discussions with Tencent management and U.S. investors, revealing Tencent's ambitious plans for share buybacks.

Tencent intends to buy back shares worth $100 billion this year, demonstrating strong commitment, capability, and execution in shareholder return initiatives.

With Tencent accelerating its buyback pace to $1 billion per day in January, BofA Securities estimates the annual buyback could exceed $130 billion, significantly surpassing forecasts.

Shareholders are expected to receive a return of over 5% this year, considering dividends declared last year.

Tencent's buyback size already exceeds

Tencent's strategic focus on improving game revenues is evident, with the early release of DnF Mobile reflecting the company's confidence.

BofA Securities predicts Tencent's advertising performance will outshine other large platforms in China, with ongoing efforts to upgrade advertising platform infrastructure driving sustained revenue growth.

Maintaining a Buy rating on Tencent, BofA Securities sets a target price of $410.