0510 GMT - Tencent has several key AI monetization pathways despite higher capital expenditure, Daiwa analyst John Choi says in a research note. AI is already helping improve user engagement, operating efficiency and monetization in its core gaming and ads businesses, while its AI productivity tools have seen increasing subscriptions, he says. Regarding Tencent's current valuation, Daiwa thinks investors are paying primarily for established core franchises given the limited scope for potential monetization for its agent AI tools. Also, in addition to cash generation from its operating businesses, Tencent has an investment portfolio of US$130 billion that provides financial flexibility, Daiwa adds. It notes that Tencent currently has no plans to undertake an equity issuance for additional funding. Shares are last at 442.60 Hong Kong dollars.