Morningstar analyst Ivan Su reports that Tencent is likely to benefit from the recent surge in game licenses approved by authorities. Su predicts that Tencent's revenue will grow by 13.1% and 10.4% in 2025 and 2026, respectively, with adjusted earnings per share expected to rise by 20.1% this year. The analyst noted that Chinese authorities approved 463 game licenses in the third quarter, a 34% year-over-year increase and a 23% year-over-year increase through September, suggesting that the Chinese gaming industry is poised for double-digit growth in the coming quarters. Morningstar believes Tencent's stock is undervalued, trading at a 20% discount to its current valuation, and maintains its fair value estimate for Tencent's ADRs at $102.