Guosen: Maintain TENCENT (00700) "Outperform" rating, three businesses are all moving up.

Guosen released a research report stating that TENCENT (00700) has stable performance and great development potential. Long-term growth potential businesses such as WeChat e-commerce explosion and AI Agent empowerment are not included in current profit forecasts. The natural advantage of users + scenes in the Tencent ecosystem still makes Tencent one of the best-positioned companies for the AI era. Considering the outstanding performance of the gaming business, it is expected that the company's adjusted net profit for 2025-2027 will be 259.3/297.9/337.4 billion yuan, with an increase of 1%/1%/1%. The rating of "outperform the market" is maintained. The bank predicts that Tencent achieved revenue of 188.8 billion yuan in 25Q3, a year-on-year increase of 13%. It is also expected that the network advertising in the third quarter will continue to benefit from the release of advertising inventory and AI; the gaming business has performed well, especially the game "Delta Force"; the financial technology business maintains double-digit growth. In 2025Q3, it is expected that the operating profit under Non-IFRS will be 73.5 billion yuan, a year-on-year increase of 20% (without the impact of joint ventures and tax rates). The Non-IFRS attributable net profit is expected to be 66.7 billion yuan, a year-on-year increase of 12%; and the Non-IFRS attributable net profit margin is 35.4%.