CICC has issued a research report, in which it has upwardly revised its revenue projection for Tencent Holdings for the year 2026 by 1%, bringing it to RMB 831.2 billion. This adjustment is attributed to the robust expansion of Tencent's gaming sector. Furthermore, CICC has raised its Non-IFRS net profit estimates for both 2025 and 2026 by 2%, setting them at RMB 260.4 billion and RMB 290.1 billion, respectively. Alongside these revisions, CICC has reaffirmed its 'Outperform Industry' rating for Tencent and maintained a target price of HK$700. Highlights from the research report are as follows: Tencent's revenue and Non-IFRS net profit for the third quarter of 2025 (3Q25) surpassed CICC's projections by 2% and 5%, respectively. The domestic gaming segment exhibited strong performance, while the overseas gaming sector witnessed accelerated growth. It is anticipated that Tencent's gaming revenue will experience a 17% year-on-year increase in the fourth quarter (4Q). Artificial intelligence (AI) has been a driving force behind the growth of Tencent's advertising and cloud computing businesses. Advertising revenue is projected to grow by 19% year-on-year in 4Q25, and revenue from financial and enterprise services is expected to increase by 10% year-on-year. Additionally, Tencent has reduced its capital expenditure guidance, signaling a positive outlook for profit release. CICC also pointed out potential risks, including macroeconomic uncertainties, regulatory upheavals, and the possibility of costs or expense ratios surpassing expectations.