Core Viewpoint - 招银国际 has raised the target price for Tencent Holdings (00700) by 7.8%, from HKD 705 to HKD 760, while maintaining a "Buy" rating [1] Financial Performance - Tencent's total revenue for Q3 2025 increased by 15% year-on-year to RMB 192.9 billion, exceeding institutional expectations by 2% and 招银国际's expectations by 4% [1] - The strong growth in gaming revenue, which rose by 23% year-on-year, significantly contributed to the overall revenue increase [1] - Non-IFRS operating profit also grew by 18% year-on-year to RMB 72.6 billion, aligning closely with consensus expectations and 招银国际's forecasts [1] Capital Expenditure and AI Development - Due to supply chain constraints, Tencent has lowered its capital expenditure guidance for 2025 but remains committed to accelerating AI applications in advertising, gaming, e-commerce, and WeChat smart agents [1] - 招银国际 is optimistic about Tencent's long-term development opportunities in the AI sector, supported by diverse application scenarios and a large user base [1] Revenue Forecast Adjustments - Considering the better-than-expected growth in gaming revenue, 招银国际 has revised its total revenue forecasts for 2025-2027 upwards by 3%-5% [1] - The valuation window has been rolled forward to 2026 [1]

Core Viewpoint - 招银国际 has raised the target price for Tencent Holdings (00700) by 7.8%, from HKD 705 to HKD 760, while maintaining a "Buy" rating [1] Financial Performance - Tencent's total revenue for Q3 2025 increased by 15% year-on-year to RMB 192.9 billion, exceeding institutional expectations by 2% and 招银国际's expectations by 4% [1] - The strong growth in gaming revenue contributed to this performance, with a year-on-year increase of 23% [1] - Non-IFRS operating profit rose by 18% year-on-year to RMB 72.6 billion, aligning closely with consensus expectations and 招银国际's forecasts [1] Capital Expenditure and AI Development - Due to supply chain constraints, the company has lowered its capital expenditure guidance for 2025 but remains committed to accelerating AI applications in advertising, gaming, e-commerce, and WeChat smart agents [1] - 招银国际 is optimistic about Tencent's long-term development opportunities in the AI sector, supported by diverse application scenarios and a large user base [1] Revenue Forecast Adjustments - Based on better-than-expected growth in gaming revenue, 招银国际 has increased its total revenue forecasts for 2025-2027 by 3%-5% [1] - The valuation window has been rolled forward to 2026 [1]