TENCENT(HK:00700) Ge Long Hui·2025-11-05 07:23Core Viewpoint - Nomura's research report indicates that Tencent is expected to announce its third-quarter business results in mid-October, with predictions of improved gross margins and net profit growth driven by high-margin businesses such as gaming and WeChat advertising [1] Financial Performance - Gross margin is projected to improve by 4.1 percentage points year-on-year to 57.2%, exceeding market expectations of 56.2% [1] - Non-IFRS net profit is anticipated to grow approximately 12% year-on-year, which is 2% higher than market expectations [1] - Revenue for the last quarter is expected to meet forecasts, with a year-on-year growth of about 13% to 189 billion yuan [1] Business Segments - Core business performance is expected to remain robust, with online gaming revenue projected to grow by 18% year-on-year [1] - Domestic and overseas gaming revenue is expected to increase by 15% and 25% respectively [1] - WeChat video account advertising and search advertising are seen as ongoing growth drivers for Tencent [1] Future Outlook - AI applications are anticipated to enhance advertising return rates and contribute positively to revenue [1] - Nomura maintains a "Buy" rating on Tencent, raising the target price from 721 HKD to 757 HKD [1]