MARKETPLACES INTERNATIONAL: THE TARGET PRICE FOR THE LAUNCH OF AI PRODUCTS AND THE ECO-CARE HAS DROPPED TO HK$ 620

ON 14 AUGUST, THE INTERNATIONAL EXCHANGE FOR SECURITIES INTERNATIONAL PUBLISHED A STUDY POINTING TO A SLIGHT IMPROVEMENT IN THE SECOND SEASON ' S EXPECTED PERFORMANCE, THE GROWTH OF DOMESTIC GAMES AND ADVERTISING, THE REMOVAL OF NEW AI INPUTS, AND A 19 PER CENT INCREASE IN THE YEAR ' S EARNINGS, WHILE THE QUALITY OF THE CORE INDUSTRY ' S PROFITS CONTINUED TO IMPROVE. ON THE OTHER HAND, THE ANNOUNCEMENT CLEARLY IDENTIFIED FOUR AI STRATEGIES TO SUPPORT MORE RADICAL CAPITAL SPENDING. THE BANK NOTED THAT THE RELEASE OF THE AI-ENABLED CORE BUSINESS PROFITS SUPPORTED THE AI INPUT, FOLLOWED BY THE “ADDITIONAL” RATING FROM HK$ 632 TO HK$ 620. CAPITAL EXPENDITURE IS PROJECTED TO RISE TO $215.7 BILLION AND $26 BILLION IN 2026 AND 27 YEARS, AND 5 TO 9 PER CENT OF NET CORE PROFITS FROM 2026 TO 28 YEARS ARE PROJECTED TO INCREASE BY 2 PER CENT AND 3 PER CENT IN 2026 AND 27 YEARS, RESPECTIVELY, AS A RESULT OF HIGHER DEPRECIATION COSTS. THE BANK BELIEVES THAT THE INCREASE IN CAPITAL EXPENDITURE WILL PUT SOME FINANCIAL PRESSURE ON TELECOMMUNICATION IN THE SHORT TERM, BUT COULD BE MITIGATED BY A RISE IN PROFITS FROM THE CORE INDUSTRY, WITH CLEAR DOWNSIDE PROTECTION FOR AI INVESTMENTS。