Asia300

Tencent Holdings Ltd.

China

  • 1m
  • 3m
  • 6m
  • 1y
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  • 5y
Mar 24, 2017
Prev close: 225.2
Mar 24, 2017
Market cap:
Market cap(USD):
2,134.27B
274,778.84M
Shares: 9,477.24M

Currency in HKD

Company profile

Market(Ticker): HKG(700)
Sector:
Industry:
Technology Services
Internet Software/Services
Full time employees: 30,641

Business summary

Tencent Holdings Ltd. engages in the provision of value-added services. It operates through the following segments: Value-added Services, Online Advertising, and Others. The Value-added Services segment involves online and mobile games, community value-added services, and applications across various Internet and mobile platforms. The Online Advertising segment comprises of display based and performance based advertisements. The Other segment consists of trademark licensing, software development services, software sales, and other services. The company was founded by Yi Dan Chen, Hua Teng Ma, Chen Ye Xu, Li Qing Zeng, and Zhi Dong Zhang on November 23, 1999 and is headquartered in Shenzhen, China.

Company background

Tencent Holdings is a Chinese Internet services giant based in Shenzhen, Guangdong Province. It is the biggest rival of Alibaba Group, the country's largest e-commerce company. Baidu, Alibaba and Tencent are commonly known collectively as BAT in China.

Tencent was established in 1998. With the hit of its social network service QQ, users of its smartphone chat app WeChat surged, reaching 549 million at the end of March 2015. WeChat is gaining popularity with young Chinese.

As its revenue mainly comes from PC and smartphone games as well as advertising, increasing QQ and WeChat users is likely to lead to higher earnings.

Ma Huateng, founder and CEO of Tencent, is a young entrepreneur from Shantou, the coastal eastern part of Guangdong Province, where many competent overseas Chinese have their roots. He is also a major shareholder of Tencent, owning some 10% of the company.

In the news

Financial highlights

Dec 2016

  • Local currency
  • US Dollar
Revenue 177,527.17M
Gross profit 98,730.19M
Operating income 64,371.68M
Income before tax 63,283.88M
Net income 48,016.15M
EBITDA 79,127.63M
Diluted EPS 5.05
Dividends per share 0.61
Total assets 441,681.31M
Total liabilities 233,896.45M
Total equity 194,817.76M
Operating cash flow 76,552.44M

Currency in HKD

Revenue 16,366.11M
Gross profit 9,524.40M
Operating income 5,793.68M
Income before tax 6,206.56M
Net income 4,583.20M
EBITDA 6,849.35M
Diluted EPS 0.48
Dividends per share 0.06
Total assets 47,249.28M
Total liabilities 28,446.16M
Total equity 18,485.12M
Operating cash flow 7,672.08M

Currency in USD

Valuation measures

Dec 2016

PER 37.04
ROA 11.88%
ROE 28.40%
Operating margin 36.26%
Profit margin 27.04%

Key executive

  • Chairman & Chief Executive Officer: Hua Teng Ma
  • President & Executive Director: Chi Ping Lau
  • COO & President-Interactive Entertainment Group: Yu Xin Ren
  • Chief Financial Officer & Senior Vice President: Shek Hon Lo
  • Chief Information Officer: Chen Ye Xu

Share holders

  • Naspers Ltd.(33.2%)
  • MA HUA TENG(8.7%)
  • The Vanguard Group, Inc.(1.8%)
  • BlackRock Fund Advisors(1.0%)
  • Capital Research & Management Co. (World Investors)(0.8%)
  • T. Rowe Price Associates, Inc.(0.8%)
  • Norges Bank Investment Management(0.7%)
  • Capital Research & Management Co. (Global Investors)(0.6%)
  • Schroder Investment Management Ltd.(0.6%)
  • OppenheimerFunds, Inc.(0.5%)

Address

  • Website: http://www.tencent.com
  • Address: Tencent Building, Kejizhongyi Avenue, Hi-tech Park, Shenzhen, 518057, China
  • Phone: +86.755.8601.3388

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