Zhi Tong Cai Jing·2025-11-14 13:13Core Viewpoint - Tencent Holdings (00700) reported Q3 2025 revenue of 192.9 billion yuan, a year-on-year increase of 15.4%, exceeding market consensus by 2.15% [1][2] - The company maintains a "Buy" rating and raises the target price to 741 HKD, supported by strong game pipeline and AI-driven efficiency improvements [1][4] Financial Performance - Q3 2025 Non-IFRS operating profit reached 72.6 billion yuan, surpassing consensus by 0.58%, with an operating margin of 37.6%, slightly below the expected 38.2% due to higher sales and R&D expenses [2][3] - Non-IFRS net profit was 70.6 billion yuan, exceeding consensus by 6.84%, with a net profit margin of 36.6%, up 0.8 percentage points year-on-year [2] Gaming Segment - Total gaming revenue for Q3 2025 was 63.6 billion yuan, a year-on-year increase of 22.8%, exceeding consensus by 5.21% [2][3] - Domestic game revenue was 42.8 billion yuan, up 14.7% year-on-year, with the game "Delta Operation" ranking third in the domestic industry, showing significant user growth [2] - Overseas game revenue reached 20.8 billion yuan, a substantial year-on-year increase of 43.4%, driven by new acquisitions and record user engagement in existing titles [3] Advertising and Enterprise Services - Marketing services revenue for Q3 2025 was 36.2 billion yuan, a year-on-year increase of 20.8%, exceeding consensus by 1.81% [3] - Financial technology and enterprise services revenue was 58.2 billion yuan, up 9.6% year-on-year, slightly above consensus by 0.07% [3] Capital Expenditure and R&D - Capital expenditure for Q3 2025 was 13 billion yuan, down 24% year-on-year, below expectations by 43.9%, primarily due to supply chain issues [3] - R&D expenses reached a record high for a single quarter, focusing on AI development and enhancing operational efficiency [3] Profit Forecast and Valuation - The company raised its Non-IFRS net profit forecasts for 2025-2027 to 265.8 billion, 298.4 billion, and 335.1 billion yuan, reflecting increases of 4.0%, 3.5%, and 4.0% respectively [4] - The current price corresponds to a PE ratio of 21x/19x/17x for 2025-2027, indicating attractive valuation based on stable business growth [4]