Zhi Tong Cai Jing·2025-10-21 08:45Core Viewpoint - Morgan Stanley forecasts Tencent Holdings (00700) to achieve a 13% year-on-year revenue growth in Q3, with an 18% increase in non-IFRS operating profit, indicating potential growth in gaming and advertising sectors, and a likely expansion in profit margins [1] Financial Performance - Tencent's Q3 revenue is expected to grow by 13% year-on-year [1] - Non-IFRS operating profit is projected to rise by 18% [1] Business Outlook - Morgan Stanley maintains an "Overweight" rating on Tencent, setting a target price of HKD 700, continuing to view it as a preferred stock [1] - The firm has raised its non-IFRS operating profit forecasts for Tencent for the years 2025 to 2027 by 1% to 2% [1] - Anticipated capital expenditure for Tencent from 2025 to 2027 is estimated at RMB 320 billion [1] Growth Drivers - The company is expected to demonstrate robust growth across all business segments, supported by positive operating leverage, limited competition, and strong capital management and execution capabilities [1]