Tencent Investment Rating and Target Price by Major Institutions (Table) (Update)

Tencent (00700.HK) will announce its third-quarter results for this year today (13th), benefiting from the stable performance of evergreen games such as "Honor of Kings," "Game for Peace," and "Crossfire," as well as the strong performance of "Delta Force" (with daily active users exceeding 30 million in September, a 50% increase compared to July). The international gaming business is driven by factors such as game revenue growth from Supercell's games, and advertising upgrades and revenue growth driven by artificial intelligence. According to a comprehensive analysis of 12 brokerages, Tencent's non-International Financial Reporting Standards net profit for the third quarter of 2025 is expected to be between RMB 65.2 billion and RMB 68.895 billion, compared to RMB 59.813 billion in the same period last year, representing a year-on-year increase of 9% to 15.2%, with a median of RMB 67.029 billion, a year-on-year increase of 12.1%.

Based on predictions from 6 brokerages, Tencent's net profit for the third quarter of 2025 is expected to be between RMB 55.857 billion and RMB 58.891 billion, compared to RMB 53.23 billion in the same period last year, representing a year-on-year increase of 4.9% to 10.6%, with a median of RMB 57.389 billion, a year-on-year increase of 7.8%. The market is focused on the growth prospects of Tencent's gaming and advertising businesses, including the gross margin performance of the gaming industry, as "Delta Force" may have a lower gross margin due to IP sharing and large-scale innovative marketing activities. Attention is also on the improvement of gross margins in non-payment fintech businesses and e-commerce service fees. Investors are also focusing on Tencent Cloud's revenue growth, capital investment in artificial intelligence, operational strategies (especially the potential and application scenarios of the mixed Yuan model and WeChat ecosystem in long-term AI, chip procurement and application, and data center expansion), and shareholder return guidance.

We list the investment ratings and target prices from 15 brokerages for Tencent:

Brokerage│Investment Rating│Target Price

Jefferies│Buy│794 HKD

HSBC Global Research│Buy│780 HKD

Bank of America Securities│Buy│780 HKD

Goldman Sachs│Buy│770 HKD

UBS│Buy│760 HKD

Huatai Securities│Buy│759.47 HKD

Nomura│Buy│757 HKD

Daiwa│Buy│750 HKD

Citi│Highly Confident Outperform│740 HKD

Citi│Buy│735 HKD

BOCI│Buy│710 HKD

Morgan Stanley│Overweight│700 HKD

CICC│Outperform Industry│700 HKD

Haitong International│Outperform Market│700 HKD

JP Morgan│Overweight│685 HKD