Lyon: Tencent Holdings (00700.HK) third quarter revenue increased by 14% year-on-year. Reiterating the "highly confident outperforming market" rating.

Zhito Finance APP learned that Lyon released a research report stating that it is expected that Tencent Holdings (00700.HK) will have a robust performance in the third quarter, with total revenue expected to increase by 14% year-on-year to 190 billion yuan, and adjusted EBIT increase by 21% to 74.1 billion yuan. Among them, online gaming business is expected to increase by 18% year-on-year; online advertising is driven by technological upgrades and transformation, with revenue expected to increase by 20% during the period; and commercial service revenue is expected to increase by over 20% year-on-year. The bank predicts that with the resilient growth of online gaming, advertising, and cloud services, the growth momentum will continue into the fourth quarter of this year. In addition, Tencent is the biggest beneficiary of artificial intelligence applications. The bank has raised the company's adjusted net profit forecast for this year and next year by 0.8% each, reiterating a "highly confident in outperforming the market" rating with a target price of 740 Hong Kong dollars.