Ge Long Hui·2025-11-19 11:50Core Insights - Tencent's Q3 2025 revenue reached 192.9 billion, a year-on-year increase of 15%, exceeding Bloomberg's expectations by 2% [1] - The net profit attributable to shareholders for Q3 2025 was 63.1 billion, up 19% year-on-year, surpassing Bloomberg's forecast by 12% [1] - AI is driving significant revenue growth across all business lines, with expectations for continued increases in AI penetration [1] Revenue Breakdown - Value-added services revenue for Q3 2025 was 95.9 billion, a 16% year-on-year increase, exceeding Bloomberg's expectations by 3% [1] - Game revenue reached 63.6 billion, up 23% year-on-year, surpassing Bloomberg's forecast by 5%, driven by both international and domestic games [1] - Daily active users (DAU) for "Peacekeeper Elite" reached a new high of 33 million, supported by AI enhancements [1] Advertising and Marketing Services - Marketing services revenue for Q3 2025 was 36.2 billion, exceeding Bloomberg's expectations by 2%, with a year-on-year growth of 20% [2] - The increase in advertising revenue is attributed to improved ad exposure and AI-driven eCPM enhancements [2] - The new intelligent advertising product AIM+ is expected to drive sustained high growth [2] Financial Technology and Cloud Services - Financial technology and enterprise services revenue for Q3 2025 was 58.2 billion, a 10% year-on-year increase, with payment business growth continuing to recover [2] - Cloud services revenue is primarily driven by AI-related service demand and merchant technology service fees [2] - Short-term cloud business growth may be limited due to prioritizing internal AI computing needs [2] Future Outlook - Anticipation for sustained growth in gaming and advertising, with new game releases expected to contribute to revenue in 2026 [3] - Adjusted IFRS net profit forecasts for 2025-2027 are 226 billion, 261.1 billion, and 297 billion respectively [3] - A sum-of-the-parts (SOTP) valuation suggests a target price of 664.22 HKD, maintaining a "buy" rating [3]