Lyonnese has just issued a research report, forecasting that Tencent Holdings (00700) is set to deliver a strong performance in the upcoming third quarter. The report anticipates a 14% year-on-year increase in total revenue, bringing it to RMB 190 billion, coupled with a 21% rise in adjusted EBIT to RMB 74.1 billion. Looking at the specifics, the online gaming segment is projected to expand by 18% year-on-year. Meanwhile, online advertising revenue is likely to see a 20% uptick, and business services revenue is expected to grow by over 20% year-on-year. This positive growth trend is predicted to persist into the fourth quarter. Furthermore, Tencent stands out as the primary beneficiary in the realm of artificial intelligence applications. In light of these developments, Lyonnese has revised its adjusted net profit forecasts for Tencent upward by 0.8% for both the current year and the next. The firm reaffirms its 'Highly Confident Outperform' rating, assigning a target price of HK$740 to Tencent's shares.