Guosen Securities has issued a research report reiterating its "Outperform" rating on TENCENT (HKEX: 00700). The report highlights the company's increased investment in AI talent and capabilities, noting that its Hunyuan 3.0 model achieves performance comparable to top-tier global open-source models with a relatively lower parameter count. The WorkBuddy product is seen as providing a high-value direction for the iterative development of Tencent's models, with the firm expressing confidence in Tencent's overall ecosystem strength. Profit forecasts are maintained, with projected adjusted net profits for 2026-2028 expected to be 275.8 billion yuan, 313.2 billion yuan, and 348.6 billion yuan, respectively.
Key Points from the Report
Hunyuan 3.0 Model Maintains Preview Parameter Scale, Focusing on Practicality
The total parameter count for the Hunyuan 3.0 model is 295 billion, with 21 billion activated parameters. Its context length is 256K, which, while substantial, indicates potential for improvement compared to the 1M context lengths becoming more common domestically. The model's development has prioritized enhancing post-training quality. Following the release of the Hunyuan 3.0 Preview in late April, extensive feedback was gathered from over 50 business units, leading to the resolution of various user experience issues and further improvements in the scale and quality of post-training. Hunyuan 3.0 builds on the Preview by improving the quality and diversity of post-training data, scaling up reinforcement learning compute power, and demonstrating significant progress in tasks involving reasoning, agent capabilities, and long-context understanding.
Hunyuan 3.0 Achieves Top-Tier Performance with Efficient Parameter Use
On benchmark evaluations, Tencent's Hunyuan scored 57.9 on the SWE-bench (assessing general agent problem-solving). It showed particularly strong performance on practical metrics like SkillsBench (skill usage efficacy) and ClawEval (autonomous agent trustworthiness), enhancing its practical value across various products and productivity tasks. Significant progress has been made in productivity areas such as coding, office work, finance, front-end development, and game creation. Based on internal assessments, Hunyuan 3.0 (with an average score of 2.67/4) demonstrated superior performance, with notable advantages in categories like front-end development, CI/CD, and data & storage.
WorkBuddy Provides High-Value Direction for Model Iteration
As one of China's most popular AI office assistants, WorkBuddy addresses real and complex scenario demands like automated script generation and workflow orchestration. This provides a high-value direction for the iterative enhancement of the Hunyuan model's capabilities. Progress with Hunyuan 3.0 is notably evident in productivity tasks spanning coding, office functions, finance, front-end work, and game production. Leveraging its strengths in product development and ecosystem building, Tencent has grown WorkBuddy into the domestic office assistant platform with the highest user count.
WorkBuddy lowers the barrier to entry with zero-configuration, out-of-the-box usability. Users can assign tasks using pure natural language without needing to write code or adjust APIs, making it suitable for general office workers. It comes pre-built with over 20 skill packages (for data processing, invoices, archiving, competitive research, public opinion analysis, sales insights, etc.) and supports models beyond Hunyuan, such as DeepSeek, Zhipu AI, Kimi, and MiniMax. It integrates with platforms like WeChat, WeCom, QQ, Lark, and DingTalk. According to Analysys data, WorkBuddy's PC version had 8.85 million monthly visits in March.
WorkBuddy is a full-scenario office assistant encompassing programming, document handling, data tasks, and browser automation. It uniquely leverages the WeChat ecosystem, including features for remote PC control via WeChat and integration with Tencent's suite of products (Docs, Meetings, WeCom, IMa, etc.).
WorkBuddy Adopts Credits-Based Subscription; User Payment Habits Still Developing
WorkBuddy employs a combined commercial model of "free trial + credits metering + subscription packages + private deployment." It is expanding into the enterprise sector. An enterprise version was launched on June 5, 2026, featuring "Project" functionality, an enterprise management backend, and 7x24 expert digital employees. The company also released the WorkBuddy Enterprise+ Office Agent Suite, natively embedding Tencent Docs, Cloud Drive, and LeXiang. Starting July 1, the domestic personal version of Buddy AI will undergo its first subscription upgrade, expanding from a single Pro tier (renamed to Standard) to a three-tier system comprising Standard, Advanced, and Flagship packages.
Risk Factors to Consider
Potential risks include regulatory changes, intense competition in the advertising industry, and delays in the launch schedule for new games.
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