Lyon: Tencent Holdings' adjusted EBIT in the third quarter increased by 21% year-on-year, maintaining a high level of confidence in outperforming the market rating.

Lyon released a research report stating that it expects Tencent Holdings' performance in the third quarter to be solid, with total revenue and adjusted EBIT expected to increase by 14% and 21% year-on-year, reaching 190 billion yuan and 74.1 billion yuan respectively. The online gaming business is expected to grow by 18% year-on-year, and strong performances from games such as "Honor of Kings," "Peacekeeper Elite," "Delta Force," and "Clash Royale" may bring surprises. Based on the increased high-margin advertising revenue growth rate to about 20% by 2025, the bank has raised its adjusted net profit forecast for Tencent for the fiscal years 2025 and 2026 by 0.8%.