Core Viewpoint - The report from CMB International forecasts Tencent Holdings (00700) to achieve adjusted EPS growth rates of 21%/18%/9% for 2025-2027, with target price raised to HKD 729, maintaining a "buy" rating [1] Financial Performance - In Q3 2025, total revenue increased by 15% year-on-year to RMB 192.87 billion, exceeding expectations by 4%, with gaming revenue up 23%, social revenue up 4%, marketing revenue up 21%, and financial enterprise services up 10% [2] - Gross profit rose by 22% year-on-year, with gross margin improving by approximately 3.3 percentage points to 56.4%, driven by high-margin businesses such as domestic games, video accounts, and WeChat search, alongside ongoing cost optimization in cloud services [2] - Adjusted earnings per share reached RMB 7.58, a 19% increase year-on-year, surpassing expectations by 6% [2] Operational Highlights - Domestic game revenue grew by 15% year-on-year, benefiting from titles like Delta Action, Valorant, and Honor of Kings; overseas game revenue surged by 43%, driven by Brawl Stars, new games, and studio mergers [3] - Social revenue increased by 5%, supported by live streaming on video accounts and paid music services [3] - Marketing revenue rose by 21%, enhanced by new advertising products and AI-driven advertising effectiveness [3] - Financial technology revenue saw high single-digit growth, with accelerated growth in commercial payment transaction volume; enterprise services experienced double-digit growth, driven by merchant technology service fees and significant growth in cloud storage data management [3] Outlook and Valuation - The company expects game revenue growth rates of 21%/9% for 2025/2026, social revenue growth of 7% for both years, advertising growth of 19%/13%, and FBS growth of 9% for both years, indicating potential for upward adjustments [4] - Capital expenditure is projected to be below 10% of revenue in 2025, with an absolute value expected to be around RMB 80 billion, primarily for product iteration and upgrades, rather than focusing on computing power as a core business [4]