Citi: Tencent’s Hy4 official release adds visual understanding, expanding into office and professional software scenarios

What’s new in the official Hy4 release compared with the preview?

Tencent released the official version of Hy4 on 4 November. Compared with Hy4 Preview, the new version expands the scale of pre-training and post-training and improves instruction following, long-context understanding, long-horizon tasks and deep research capabilities, while adding visual understanding for the first time.
Visual capabilities enable the model to process fine-grained images, complex charts and visual mathematical reasoning. Combined with tool use, it can also switch between the command line and graphical interfaces, and has been trained for professional software such as Blender and CAD, supporting multi-step computer operations.
Citi believes these upgrades will help narrow the gap with frontier models and better position Tencent to handle complex enterprise workflows as an agentic AI platform. Tencent also acknowledges that Hy4 still trails global frontier models.

In financial services, Tencent has built thousands of workspaces and tens of thousands of high-quality tasks based on real business operations, covering investment research, quantitative strategies, asset allocation, and tax and finance. In an evaluation involving 213 Tencent fintech and external experts, Hy4 outperformed the comparable open-source models listed.
Office products support real-time human-AI editing of Word, Excel and PPT. WorkBuddy can connect chat records, email, documents, calendars and meetings, track task progress, send priority-based reminders, and now includes team collaboration features.
In frontend design and game development, visual enhancements are being used to improve complex interactions and frontend-backend collaboration. Tencent has also worked with its in-house game developers to optimize data and evaluation in support of mainstream game engines. Citi believes that combining model capabilities with these product scenarios will help strengthen Tencent’s enterprise AI and office productivity positioning.

Hy4 is available through Tencent Cloud, OpenRouter and products including CodeBuddy, WorkBuddy, Yuanbao and ima. Pricing is unchanged: RMB 6 per million input tokens and RMB 18 per million output tokens. Model weights are expected to be made available soon.
Tencent plans to continue expanding training scale and improving capabilities in frontier mathematics, long-horizon development tasks and visual queries, and to launch Hy4 Flash soon for high-frequency and product collaboration scenarios, with faster inference and greater cost efficiency.

Citi reiterated its Buy rating on Tencent and its HK$755 target price. Under its sum-of-the-parts valuation, the target price implies forecast price-to-earnings ratios of 22.8x for 2026 and approximately 23.4x for 2027.
Downside risks to the target price listed by the bank include core PC game revenue slowing more than expected, unsuccessful launches of new mobile games, advertising demand being affected by a slowdown in China’s economy, and changes in the regulatory environment.