Daily Investment Strategy
Daily focus：Tencent Holdings (700)
Tencent Holdings announced its third-quarter 2025 results, demonstrating solid performance and exceeding market expectations. Total quarterly revenue reached RMB192.9 billion, a 15% year-on-year increase. Non-IFRS net profit was RMB70.6 billion, an 18% year-on-year increase, showcasing strong profitability.Growth was primarily driven by gaming and advertising businesses. International gaming revenue performed exceptionally well, surging 43% year-on-year, mainly due to the strong performance of Supercell and contributions from newly acquired studios. Domestic gaming revenue also grew by 15%, driven by new games such as Delta Force and Valorant. Marketing services (advertising) revenue increased by 21% year-on-year, with growth contributed by Video Accounts, Mini Programs, and WeChat Search.
China's October social financing data, far below expectations
China's October social financing data, far below expectations, became the focus of the market. Data showed a significant slowdown in both new RMB loans and total social financing, reflecting extremely weak financing demand in the real economy, with households lacking confidence. Although the central bank's third-quarter monetary policy report released attempted to signal stability, stating that inflation was moderate and that there was a greater focus on direct financing, the weak credit data was clearly more impactful. In the US, the government resumed operations after a historic 43-day shutdown. The market is anxiously awaiting a large amount of delayed key economic data (such as employment and inflation), which will significantly influence the Federal Reserve's next move and bring considerable uncertainty.
Hong Kong Stock Connect saw a net outflow of HK$3.5 billion on Thursday, with Alibaba (9988) experiencing the largest net inflow at HK$1.37 billion, followed by Xiaomi Group (1810). On the other hand, the Tracker Fund of Hong Kong (2800) recorded the largest net outflow at HK$6.23 billion, followed by the Hang Seng China Enterprises Index (2828).
Leung Kai Tong is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to https://apps.sfc.hk/publicregWeb/indi/ADU276/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
The materials contained herein are provided by KGI Asia Limited ("KGI") for information only. While such materials are based on or derived from sources believed to be reliable, KGI makes no representation or warranty (express or implied) as to their accuracy or reliability. Neither the information nor the opinions expressed herein constitute, or are to be construed as, an offer or invitation or solicitation of an offer to buy or sell any securities or investments. KGI and its officers, employees, agents and affiliates may have interests in the securities or investments covered herein and accept no liability whatsoever for any loss or consequence whatsoever (whether direct or indirect) resulting from any use of or reliance by you on such materials.
