Tencent Holdings Ltd UNS ADR (TCEHY)
Buy The Dip: Tencent's Value Thesis Not Changed By US Blacklist Concern
Tencent shares present a buying opportunity despite U.S. blacklisting, as the company's fundamentals remain strong and minimally reliant on U.S. capital or technology. Tencent's aggressive buyback of HK$1.5 billion during the price drop demonstrates confidence and aims to capitalize on temporary price pressure. Strong financial performance with 7% revenue growth and 24% operating income increase, highlighting efficiency and profit expansion momentum into 2025.
Tencent: Growth At The Right Price
Tencent's strong social media and fintech segments, coupled with a positive gross profit trend, underline favorable business trends. TCEHY's core value-added services and fintech segment are driving significant revenue and gross profit growth. The Company's valuation is highly attractive, trading at a low forward P/E ratio of 11.0x, and the company generates billions of dollars each quarter in free cash flow.
U.S. blacklist: Near-term earnings impact on Tencent and CATL 'fairly negligible,' says strategist
Eugene Hsiao, head of China equity strategy at Macquarie Capital, says "my best guess here is Tencent and CATL are not major suppliers to the U.S. military, hence the economic risk for them in the near term is fairly minimal, but I do think the 'oh no' moment really comes if this expands."
Assessing Prosus' Value After The Despegar Acquisition And Tencent's Correction
Prosus N.V. stock trades at a significant discount to its NAV, which primarily consists of Tencent Holdings Limited shares. Tencent itself has underperformed recently, meaning that Prosus potentially offers a “double discount” opportunity for value investors. I don't think Prosus can eliminate its NAV discount any time soon, but moves such as the Despegar.com acquisition are incrementally small steps in the right direction.
Tencent: Recent Blacklist May Provide An Attractive Entry Point For Politically Neutral Investors
In 3Q24, TCEHY generated RMB 167.2 billion, posting revenue growth of 8.13% y/y and 3.7% q/q. During this period, operating and net margins have expanded while FCF margin remains high. Currently, TCEHY is facing multiple headwinds due to geopolitical tensions and China's deteriorating economy. Recently, the US has added TCEHY to the Chinese military blacklist, impacting its valuation and investor sentiment. That being said, TCEHY continues to demonstrate robust topline growth and operational excellence. The company has multiple initiatives to ensure stability and growth.
Tencent makes $193 million share buyback after US blacklist inclusion triggered sell-off
Tencent Holdings Ltd., China's tech giant and social media behemoth, is navigating turbulent waters following its inclusion on a list over alleged ties to the Chinese military.
US designates Tencent a Chinese military company, adding tech giant to blacklist
The Defense Department added video game maker Tencent Holdings to its "blacklist" of companies doing business in the U.S. while allegedly aiding the Chinese military.
China Tech Giant Tencent Blacklisted by US; Canada PM Trudeau Exit
The US has blacklisted Tencent Holdings and Contemporary Amperex Technology. for alleged links to the Chinese military.
Tencent, Tesla Battery-Maker CATL on US Blacklist for Alleged China Military Ties
The US has blacklisted Tencent and CATL for alleged links to the Chinese military in a surprise move weeks before Donald Trump takes office. The blacklisting may disrupt the global electric-vehicle battery market, as CATL is a major supplier to Tesla and other automakers, and may escalate tensions between the US and China.
Tencent: Marketing Services And FinTech Driving Growth; Initiate With 'Strong Buy'
Tencent's stock is undervalued; I rate it a 'Strong Buy' with a fair value of HKD 550 or USD $70 per share. Tencent dominates China's online game market, despite government restrictions, and is expected to outgrow the market with new titles and monetization improvements. Marketing Services and FinTech are key growth drivers, with Marketing Services growing 16.7% and FinTech 15.1% year-over-year in FY23.
Tencent sees £120bn wiped from its value after US censure
Over $120 billion was wiped from the value of Tencent Holdings (HKG:0700, OTC:TCEHY) after the US Department of Defense added the tech giant to its list of Chinese military companies. Battery maker CATL, also included on the list, saw its Shenzhen shares dip 2.8%.
Investor Sees Buying Opportunity in Tencent, CATL | Insight with Haslinda Amin 1/7/2025
Insight with Haslinda Amin, a daily news program featuring in-depth, high-profile interviews and analysis to give viewers the complete picture on the stories that matter. The show features prominent leaders spanning the worlds of business, finance, politics and culture.
