Guoxin Securities·2025-11-16 06:49Investment Rating - The investment rating for the company is "Outperform the Market" [4][35]. Core Insights - The company reported a revenue growth of 15.4% year-on-year, reaching 192.9 billion yuan in Q3 2025, driven primarily by strong performance in advertising and gaming sectors [1][9]. - Adjusted operating profit increased by 18% year-on-year to 72.6 billion yuan, with a notable improvement in profit margins due to a higher proportion of high-margin businesses in the revenue mix [1][9]. - The company’s comprehensive gross margin improved to 56%, up 3 percentage points year-on-year, with significant contributions from value-added services, online advertising, and financial technology [1][10]. Revenue Breakdown - The online gaming revenue grew by 23% year-on-year to 63.6 billion yuan, with domestic market revenue increasing by 15% to 42.8 billion yuan, and international market revenue rising by 43% to 20.8 billion yuan [3][24]. - Marketing services revenue reached 36.2 billion yuan, reflecting a 21% year-on-year growth, driven by increased eCPM prices and enhanced user engagement [29]. - Financial technology and enterprise services revenue grew by 10% year-on-year to 58.2 billion yuan, benefiting from increased commercial payment activities and cloud service growth [30]. Financial Projections - The company’s adjusted net profit forecasts for 2025, 2026, and 2027 are 262.6 billion yuan, 301.3 billion yuan, and 345.4 billion yuan respectively, with slight upward adjustments of 1%, 1%, and 2% [35]. - The projected revenue for 2025 is 753.3 billion yuan, reflecting a year-on-year growth of 14.1% [8].