Summary: Tencent’s 3Q revenue was up 43.4% YoY, which was 5.1% and 2.1% higher than our estimate and market consensus. The strong revenue growth was driven by revenue from IVAS (+45.4% YoY) and Online ADs (+57.0% YoY). We expect top-line growth remain strong at a CAGR of 31.5% in FY10-13. However, NPM was down 8.6 p.p. YoY to 32.6% mainly as a result of the increase in SG&A (+103.4% YoY) and Diluted EPS was up only 13.4% YoY in 3Q. Therefore we revise down FY11-13 Operating Margin by 4.6-8.8 p.p. and expect FY10-13 Diluted EPS to have a CAGR of 20.8%.