0647 GMT - Tencent's AI buildout won't be a perpetual cash burn, Morningstar analyst Ivan Su says in a research note. Tencent's Hy large language model should improve rapidly after procuring large amount of computing power to train it, the analyst notes. If Hy disappoints, the hardware could be rented out to third parties to quickly recoup the steep investment, he says. Still, Su thinks the largest long-term AI potential from Tencent's different applications in advertising, games and WeChat AI agent rather than renting out compute. The analyst thinks Tencent's free cash flow should turn positive in 2027, opening room for larger shares buybacks from that point. Shares are last 2.5% higher at HK$443.80.