Investment Rating - The report maintains a "Buy" rating for the company [5] Core Insights - The company's Q3 2025 revenue reached 28.36 billion yuan, a year-on-year increase of 8.2%, which was below Bloomberg consensus expectations of 2.96%, primarily due to product launch timing and revenue recognition delays [1] - Deferred revenue surged to 19.47 billion yuan in Q3 2025, a year-on-year increase of 25.3%, significantly exceeding consensus expectations by 41%, indicating strong player willingness to pay during new game launches [1] - The company is focused on long-term investment strategies and shareholder value, with a strong cash flow performance and a cash reserve of 153.2 billion yuan [3] Revenue and Profit Forecast - The company forecasts revenues of 114.5 billion yuan, 123.6 billion yuan, and 132.2 billion yuan for 2025, 2026, and 2027 respectively, with Non-GAAP net profit estimates of 39 billion yuan, 41.4 billion yuan, and 44.5 billion yuan for the same years [4][9]

Core Insights - Tencent reported a total revenue of 636 billion yuan from its online gaming business in Q3 2025, with domestic market revenue at 428 billion yuan, reflecting a 15% year-on-year growth, and international market revenue at 208 billion yuan, showing a 43% year-on-year increase [1][2]. Domestic Market Performance - The domestic gaming revenue growth is primarily driven by new releases such as "Delta Force" and the sustained performance of evergreen titles like "Honor of Kings" and "Peacekeeper Elite" [3]. - "Honor of Kings" celebrated its 10th anniversary with significant player engagement, achieving over 139 million daily active users in China by October 2025 [3]. - "Peacekeeper Elite" also reached a milestone with over 33 million active users on August 9, 2025 [3]. International Market Performance - Tencent's international gaming revenue growth is attributed to the performance of Supercell's games, contributions from acquired studios, and the successful launch of "Dying Light: The Reckoning" [2]. - "Clash Royale" achieved record highs in daily active accounts and revenue in September, with a year-on-year revenue increase of 360% [2]. - Tencent's global strategy has been effective, with a focus on market understanding, quality standards, gameplay innovation, and ecosystem development, leading to significant contributions from core products [2]. Growth in Shooting Game Segment - The shooting game segment remains a key growth driver, with "Delta Force" ranking among the top three in industry revenue for the quarter [3][4]. - The global shooting game market is projected to grow from $82.02 billion in 2025 to $192.9 billion by 2032, with a compound annual growth rate of 13.0% [3]. - "Valorant: Source Energy" has emerged as one of the most successful mobile games launched in China this year, with over 50 million monthly active users reported [4].