Core Insights - Tencent Holdings reported Q3 revenue of 192.87 billion yuan, a 15% year-on-year increase, and a net profit of 63.13 billion yuan, up 19% year-on-year [1] - The company emphasized the role of AI in enhancing business operations and increased marketing expenditures [1] - Tencent's gross profit for Q3 reached 108.80 billion yuan, a 22% increase, with gross margin rising from 53% to 56% year-on-year [1] Financial Performance - For the first nine months of the year, Tencent's total revenue was 557.39 billion yuan, a 14% increase, and net profit was 166.58 billion yuan, up 17% year-on-year [1] - Basic earnings per share for the quarter were 6.95 yuan, a 21% increase, while diluted earnings per share were 6.78 yuan, up 20% year-on-year [1] Business Segments - Value-added services revenue was 95.86 billion yuan, a 16% increase, accounting for 50% of total revenue [2] - Marketing services revenue reached 36.24 billion yuan, up 21%, driven by increased user engagement and AI-driven advertising technology [2] - Financial technology and enterprise services revenue was 58.17 billion yuan, a 10% increase, supported by growth in commercial payment activities and cloud services [2] User Metrics - As of September 30, 2025, WeChat and WeChat combined monthly active accounts reached 1.414 billion, a 2% year-on-year increase [3] - QQ mobile terminal monthly active accounts were 517 million, down 8% year-on-year [3] - The number of paid value-added service subscribers remained stable at 265 million [3] R&D Investments - Tencent increased its R&D spending, with Q3 general and administrative expenses at 34.26 billion yuan, an 18% increase [3] - R&D investment reached 22.82 billion yuan, a record high for a single quarter, reflecting a 28% year-on-year increase, primarily focused on AI-related research [3]

Core Viewpoint - Tencent Music Entertainment Group (TME) has maintained a Buy rating due to its third quarter results exceeding consensus expectations, and the stock's valuation has become more attractive following an unjustified price decline [1]. Group 1: Company Overview - Tencent Music Entertainment Group is a key player in the Asian equity market, particularly focusing on value investments in Hong Kong-listed stocks [2]. Group 2: Investment Strategy - The investment strategy emphasizes identifying deep value balance sheet bargains and wide moat stocks, targeting companies with significant discrepancies between market price and intrinsic value [1][2].

Core Insights - The article discusses the investment strategies employed by a portfolio manager with over 10 years of experience in global markets, focusing on macroeconomic trends, stock selection, and real-time positioning [1]. Group 1: Investment Strategy - The portfolio manager utilizes a combination of top-down macro analysis and bottom-up stock selection to identify mispriced opportunities in the market [1]. - Emphasis is placed on monitoring earnings, technological disruptions, policy shifts, and capital flows to inform investment decisions [1]. Group 2: Market Engagement - The portfolio manager shares insights and investment ideas on Seeking Alpha, highlighting high-conviction ideas and contrarian views on both growth and value stocks [1].

Core Insights - Tencent Holdings exceeded third-quarter earnings estimates, driven by AI initiatives that boosted ad pricing growth, while Bilibili showed potential for early investment opportunities after beating earnings expectations [1][2] - JD.com reported a decline in profit year-over-year due to investments in new business ventures, including grocery delivery [1] Tencent Earnings - Tencent reported adjusted earnings of 7.58 yuan per share ($1.06), surpassing estimates of 7 yuan per share, with a year-over-year earnings growth of 21.6% [2] - Revenue increased by 17.4% to 192.87 billion yuan ($27.099 billion), exceeding forecasts of 189.04 billion yuan [2] - Monthly average users of WeChat and Weixin rose by 2% to 1.414 billion, while revenue from gaming and social network services grew by 16% to 95.9 billion yuan [3] AI and Strategic Investments - Tencent's CEO highlighted that strategic investments in AI are enhancing ad targeting, game engagement, and operational efficiencies [3] - The company is upgrading its HunYan AI foundation model, which is contributing to the increased usage of its Yuanbao AI chatbot [4] Bilibili Earnings - Bilibili reported Q3 adjusted earnings per share of 25 cents, a 212% increase from the previous year, with revenue rising 7% to $1.08 billion [5] - Gaming revenue fell by 17% year-over-year, while revenue from premium memberships and value-added services increased by 7% to $424.6 million [5] - Daily average users grew by 9% to 117 million, and monthly paying users increased by 17% to 35 million, reflecting strong user engagement [6] JD.com Earnings - JD.com reported earnings of 53 cents per share, a 56% decline from the previous year, while revenue rose by 16.9% to $42.019 billion [7] - The CFO indicated that the decline in bottom-line performance is primarily due to investments in new business areas [7] Stock Performance - Tencent's stock rose over 2% to 85.90, indicating potential early entry opportunities as it moved past the 50-day moving average [8] - Bilibili's stock slid more than 5% to 25.72, having previously broken out of a consolidation phase [8] - JD.com edged up 1.2% but remains 33% below its 52-week high [9]

此外，据报道，知情人士透露，腾讯已与苹果达成一项协议，该协议规定苹果将处理支付，并从微信小 游戏和应用内的支付中抽取15%的分成。该问题的解决(两位科技巨头之间谈判已超过一年)，为苹果开 启了新的收入来源，并减轻了腾讯的压力。 周四，腾讯控股(ADR)(TCEHY.US)盘前涨超2%，报85.68美元。消息面上，该公司公告称，第三季度营 收为1928.7亿元，同比增长15%，预估1888亿元;经调整净利润705.51亿元，同比增长18%，市场预期为 659.74亿元。 ...

此外，据报道，知情人士透露，腾讯已与苹果达成一项协议，该协议规定苹果将处理支付，并从微信小 游戏和应用内的支付中抽取15%的分成。该问题的解决(两位科技巨头之间谈判已超过一年)，为苹果开 启了新的收入来源，并减轻了腾讯的压力。 智通财经APP获悉，周四，腾讯控股(ADR)(TCEHY.US)盘前涨超2%，报85.68美元。消息面上，该公司 公告称，第三季度营收为1928.7亿元，同比增长15%，预估1888亿元;经调整净利润705.51亿元，同比增 长18%，市场预期为659.74亿元。 ...

【时政新闻】 ⑥白宫称特朗普外部团队已起诉BBC； ⑦日产和本田正在治谈在美国联合开发产品； 【市场动态】 ①美股三大股指期货齐跌，截至发稿，道指期货跌0.14%，标普500指数期货跌0.2%，纳指期货跌 0.2%； ②欧洲主要股指涨跌不一，截至发稿，英国富时100指数跌0.82%，法国CAC40指数涨0.4%，德国DAX 指数跌0.5%； ①特朗普签署临时拨款法案 结束政府停摆； ②美政府将"开门" 多部门要求员工明日返岗； ③特朗普：美国政府"停摆"损失了1.5万亿美元； ④美政府停摆结束但党争还在继续； ⑤白宫称10月经济数据或"断供" 美联储面临"失明"； ①腾讯控股盘前涨超2%，公司第三季度营收1928.7亿元，同比增长15%； ②京东美股盘前涨近2%，此前第三季度营收超预期； ③迪士尼美股盘前跌近5%，公司第四财季营收225亿美元； ④哔哩哔哩美股盘前涨近3%，其第三季度经调整净利润为7.86亿元，同比增长233%； ⑤阿里巴巴美股盘前涨超4%。 (本文来自第一财经) 【公司新闻】 ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was CNY 193 billion, representing a 15% year-on-year increase [3] - Gross profit increased to CNY 109 billion, up 22% year-on-year [3] - Non-IFRS operating profit rose to CNY 73 billion, an 18% year-on-year increase [4] - Non-IFRS net profit attributable to equity holders was CNY 71 billion, also up 18% year-on-year [4] - Overall gross margin improved to 56%, up 3 percentage points year-on-year [18] Business Line Data and Key Metrics Changes - Value-added services (VAS) revenue was CNY 96 billion, up 16% year-on-year, contributing 50% of total revenue [6] - Social networks revenue increased by 5% year-on-year to CNY 32 billion, driven by video accounts and live streaming [7] - Domestic games revenue grew by 15% year-on-year, primarily from Delta Force and Honor of Kings [7] - International games revenue surged by 43% year-on-year, attributed to upfront revenue recognition from Dying Light: The Beast [8] - Marketing services revenue increased by 21% year-on-year to CNY 36 billion, supported by ad spend growth [13] Market Data and Key Metrics Changes - Combined monthly active users (MAU) of Weixin and WeChat reached 1.4 billion, showing growth both year-on-year and quarter-on-quarter [4] - Music subscription revenue increased by 17% year-on-year, with subscribers growing to 126 million [7] - The mobile launch of Valorant resulted in over 50 million combined monthly active users in October [10] Company Strategy and Development Direction - The company is focusing on strategic investments in AI, enhancing capabilities in ad targeting and game engagement [3] - The Hunyuan foundation model is being upgraded to improve its capabilities in imagery and 3D generation [3] - The company aims to continue acquiring game studios and bringing self-developed games to global markets [22] Management's Comments on Operating Environment and Future Outlook - Management noted that the gaming business growth rate is expected to decelerate closer to underlying trends in the upcoming quarters [22] - The macroeconomic environment is gradually improving, which may positively impact consumer spending and payment services [65] - Management expressed confidence in the ongoing improvements in AI capabilities and their integration into Weixin [34] Other Important Information - The company reported a free cash flow of CNY 58.5 billion, largely stable year-on-year [19] - The net cash position increased to CNY 102.4 billion, up 37% quarter-on-quarter [19] Q&A Session Summary Question: What has driven the growth in international gaming business? - The growth rate was boosted by the consolidation of newly acquired studios and upfront revenue recognition from Dying Light: The Beast [22] Question: Can you elaborate on the Hunyuan team upgrades? - The company is hiring top talent and improving the Hunyuan architecture to enhance AI capabilities [27] Question: How does the AI Marketing Plus solution benefit advertisers? - The solution allows advertisers to automate targeting and bidding, leading to improved returns on investment [29] Question: What is the outlook for advertising revenue growth? - The growth is expected to continue, supported by AI capabilities and improving consumer spending [45] Question: How does the company view its investment strategy in the current market? - The company is actively recycling its portfolio and investing in emerging growth opportunities, particularly in AI startups [55]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was CNY 193 billion, representing a 15% year-on-year increase [3][16] - Gross profit increased to CNY 109 billion, up 22% year-on-year [3][16] - Non-IFRS operating profit reached CNY 73 billion, an 18% year-on-year increase [3][16] - Non-IFRS net profit attributable to equity holders was CNY 71 billion, also up 18% year-on-year [4][16] - Overall gross margin improved to 56%, up 3 percentage points year-on-year [18] Business Line Data and Key Metrics Changes - Value-added services (VAS) accounted for 50% of total revenue, with social networks at 17%, domestic games at 22%, and international games at 11% [6] - Marketing services contributed 19% to total revenue, while fintech and business services made up 30% [6] - Domestic games revenue grew by 15% year-on-year, driven by titles like Delta Force and Honor of Kings [7] - International games revenue surged by 43% year-on-year, attributed to upfront revenue recognition from Dying Light: The Beast and consolidation of acquired studios [8][12] Market Data and Key Metrics Changes - Combined monthly active users (MAU) of Weixin and WeChat reached 1.4 billion, showing growth year-on-year and quarter-on-quarter [4] - Music subscription revenue increased by 17% year-on-year, with music subscribers growing to 126 million [7] - Marketing services revenue rose by 21% year-on-year to CNY 36 billion, supported by ad spend growth across major categories [13] Company Strategy and Development Direction - The company is focusing on strategic investments in AI, enhancing capabilities in ad targeting and game engagement [3] - The Hunyuan foundation model is being upgraded to improve its capabilities in imagery and 3D generation, aiming for industry leadership [3] - The company plans to continue acquiring game studios and bringing self-developed games to global markets [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the international gaming business but noted a potential deceleration in growth rates [22] - The macroeconomic environment is gradually improving, which could positively impact consumer spending and fintech services [65] - Management highlighted that AI capabilities are expected to drive revenue growth and improve operational efficiency [36] Other Important Information - The company reported a free cash flow of CNY 58.5 billion, largely stable year-on-year, with a net cash position of CNY 102.4 billion [19] - R&D expenses rose by 28% year-on-year, reflecting increased investment in AI initiatives [18] Q&A Session Summary Question: What has driven the growth in international gaming? - The growth rate was boosted by the consolidation of newly acquired studios and upfront revenue recognition from Dying Light: The Beast, but is expected to decelerate [22] Question: Can you elaborate on the Hunyuan team upgrades? - The company is hiring top talent and improving infrastructure to enhance the Hunyuan model's capabilities [28] Question: How does the AI Marketing Plus solution benefit advertisers? - The solution allows for automated bidding, which has shown positive early results in terms of ROI for advertisers [76] Question: What is the outlook for advertising revenue growth? - The growth is expected to continue, supported by improved consumer spending and AI capabilities [45] Question: How does the company view its relationship with Apple? - The company has a constructive relationship with Apple and is working to enhance the mini game ecosystem [44] Question: What are the trends in consumer loans and cloud revenue? - Consumer loans are stable due to conservative underwriting, while cloud revenue growth is constrained by AI chip availability [67]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was CNY 193 billion, up 15% year-on-year [4] - Gross profit increased to CNY 109 billion, reflecting a 22% year-on-year growth [4] - Non-IFRS operating profit rose to CNY 73 billion, an 18% increase year-on-year [4] - Non-IFRS net profit attributable to equity holders was CNY 71 billion, also up 18% year-on-year [5] - Overall gross margin improved to 56%, up 3 percentage points year-on-year [18] Business Line Data and Key Metrics Changes - Value-added services (VAS) revenue was CNY 96 billion, up 16% year-on-year, contributing 50% of total revenue [6] - Social networks revenue increased by 5% year-on-year to CNY 32 billion, driven by video accounts and music subscriptions [7] - Domestic games revenue grew by 15% year-on-year, primarily due to titles like Delta Force and Honor of Kings [7] - International games revenue surged by 43% year-on-year, attributed to upfront revenue recognition from new titles [8] - Marketing services revenue increased by 21% year-on-year to CNY 36 billion, supported by ad spend growth [12] Market Data and Key Metrics Changes - Combined monthly active users (MAU) of Weixin and WeChat reached 1.4 billion, showing growth both year-on-year and quarter-on-quarter [5] - Music subscription revenue increased by 17% year-on-year, with subscribers growing to 126 million [7] - The mobile launch of Valorant resulted in a doubling of combined monthly active users to over 50 million in October [10] Company Strategy and Development Direction - The company is focusing on strategic investments in AI, enhancing capabilities in ad targeting and game engagement [4] - The Hunyuan foundation model is being upgraded, with improvements in imagery and 3D generation models [4] - The company aims to grow Yuanbao adoption and develop agentic AI capabilities within Weixin [4][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the international gaming business, although a deceleration in growth rates is expected [23] - The macroeconomic environment is gradually improving, which could positively impact consumer spending and payment volumes [66] - Management highlighted that AI capabilities are expected to drive future growth in advertising revenue [49] Other Important Information - The company reported a net cash position of CNY 102.4 billion, up 37% quarter-on-quarter [20] - Operating expenses increased, with R&D expenses rising by 28% year-on-year due to AI investments [18] Q&A Session Summary Question: What has driven the growth in international gaming? - The growth was supported by the consolidation of newly acquired studios and upfront revenue recognition from Dying Light: The Beast [23] Question: Can you elaborate on the Hunyuan team upgrades? - The company is hiring top talent and improving the Hunyuan architecture to enhance AI capabilities [30] Question: How does the AI Marketing Plus solution benefit advertisers? - The solution allows advertisers to automate targeting and bidding, leading to superior returns [33] Question: What is the outlook for advertising revenue growth? - The growth is expected to continue, driven by AI capabilities and improving consumer spending [49] Question: How does the company view its relationship with Apple? - The company has a constructive relationship with Apple and is working to enhance the mini game ecosystem [48] Question: What are the trends in consumer loans and cloud revenue? - Consumer loans are stable, and cloud revenue is expected to grow, although AI chip availability may constrain growth [68]