TENCENT(HK:00700) 3 6 Ke·2025-11-14 07:55Core Insights - Tencent maintained a steady performance in Q3 2025, with total revenue increasing by 15% year-on-year, gross profit rising by 22%, and operating profit up by 18% according to non-IFRS standards [1] - All three main business segments achieved double-digit growth: value-added services grew by 16% to RMB 95.9 billion, marketing services increased by 21% to RMB 36.2 billion, and fintech and enterprise services rose by 10% to RMB 58.2 billion [1] Gaming Performance - Tencent's gaming revenue saw a significant growth of 23%, with domestic market growth at 15% and international market growth at 43% [2] - The success of new games like "Delta Action" and the sustained performance of established titles such as "Honor of Kings" contributed to this growth [2][5] - "Delta Action" is positioned as a key product, aiming to become a leading title in the Chinese gaming market through a platformization strategy [3][4] Advertising and AI Integration - The advertising revenue grew by 21%, driven by increased ad loading rates and AI-driven ad targeting, which improved eCPM [6] - Tencent is enhancing its AI capabilities within its social platforms, with plans to introduce an AI agent in WeChat that can understand user needs and execute tasks across its ecosystem [7] Capital Expenditure and Future Outlook - Tencent's capital expenditure is projected to decrease in 2025 compared to previous guidance but will still be higher than in 2024, reflecting a strategic shift after significant investments in AI [8]