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Technology Services

Tencent Holdings Ltd.

  • 406.00 HKD
  • +5.80
  • +1.45%
  • China
    Apr 20, 2018
  • Ticker
    HKG(700)
  • Prev. close
    400.20
  • Market cap (HKD)
    3,803.18B
  • Market cap (USD)
    484,727M
  • Shares
    9,503.19M

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.

Business Summary

Tencent Holdings Ltd. is an investment company, which 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 represents 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.

Financial Highlights

Dec 2017 HKDUSD
Revenue274,157.94M35,180.85M
Gross Profit134,824.68M17,301.14M
Operating income76,359.72M9,798.73M
Income before tax100,772.87M12,931.50M
Net income82,457.24M10,581.18M
EBITDA103,424.97M13,271.83M
Diluted EPS8.641.10
Dividends Per Share0.880.11
Total Assets665,853.41M85,176.90M
Total liabilities333,218.41M42,625.76M
Total equity307,402.83M39,323.40M
Operating cash flow128,774.43M16,524.76M
Currency in HKDCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 76,254.46M 99,338.25M 126,879.52M 177,527.17M 274,157.94M
Gross Profit 40,057.02M 59,129.49M 73,456.24M 96,672.61M 134,824.68M
Operating income 21,418.92M 32,856.42M 44,915.96M 58,308.75M 76,359.72M
Income before tax 24,111.43M 36,950.42M 48,116.84M 63,283.88M 100,772.87M
Net income 19,559.15M 29,965.58M 35,531.64M 48,016.15M 82,457.24M
EBITDA 25,948.49M 38,898.62M 53,092.70M 73,064.71M 103,424.97M
Diluted EPS 2.09 3.20 3.76 5.05 8.64
Dividends Per Share 0.24 0.36 0.47 0.61 0.88
Total Assets 137,345.08M 213,953.36M 366,189.09M 441,681.31M 665,853.41M
Total liabilities 62,466.49M 111,300.34M 220,462.02M 233,896.45M 333,218.41M
Total equity 74,215.14M 100,014.31M 143,262.48M 194,817.76M 307,402.83M
Operating cash flow 34,157.23M 84,804.75M 59,478.43M 79,399.88M 128,774.43M
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 9,830.85M 12,810.09M 16,366.11M 22,869.97M 35,180.85M
Gross Profit 5,164.22M 7,625.00M 9,475.07M 12,453.86M 17,301.14M
Operating income 2,761.36M 4,236.97M 5,793.68M 7,511.63M 9,798.73M
Income before tax 3,108.48M 4,764.91M 6,206.56M 8,152.55M 12,931.50M
Net income 2,521.60M 3,864.19M 4,583.20M 6,185.69M 10,581.18M
EBITDA 3,345.32M 5,016.14M 6,848.39M 9,412.57M 13,271.83M
Diluted EPS 0.27 0.41 0.48 0.65 1.10
Dividends Per Share 0.03 0.04 0.06 0.07 0.11
Total Assets 17,713.37M 27,589.62M 47,249.28M 56,967.98M 85,176.90M
Total liabilities 8,056.29M 14,352.35M 28,446.16M 30,167.92M 42,625.76M
Total equity 9,571.51M 12,897.00M 18,485.12M 25,127.56M 39,323.40M
Operating cash flow 4,403.61M 10,935.94M 7,672.08M 10,228.70M 16,524.76M

Valuation Measures

Dec 2017
PER46.34
ROA14.89%
ROE32.83%
Operating margin27.85%
Profit margin30.07%

Key executives

  • 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

Shareholders

  • Naspers Ltd. (31.1%)
  • MA HUA TENG PONY (8.6%)
  • The Vanguard Group, Inc. (1.9%)
  • BlackRock Fund Advisors (1.3%)
  • Norges Bank Investment Management (0.8%)
  • T. Rowe Price Associates, Inc. (0.6%)
  • Capital Research & Management Co. (World Investors) (0.5%)
  • Schroder Investment Management Ltd. (0.5%)
  • Capital Research & Management Co. (Global Investors) (0.5%)
  • OppenheimerFunds, Inc. (0.5%)

Contact Details

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

Related Companies

  • Tencent Music Entertainment Group
  • Morespark Ltd.
  • Dongting Lake Investment Ltd.
  • Tencent Growthfund Ltd.
  • Qinghai Lake Investment Ltd.
  • Thl A13 Ltd.
  • China Literature Ltd.
  • Shenzhen Tenpay Technology Co., Ltd.
  • Image Frame Investment (HK) Ltd.
  • Miniclip SA
  • Tencent Cloud Computing (Beijing) Ltd.
  • Shenzhen Tencent Domain Computer Natwork Co. Ltd.
  • Tencent Mobility Ltd.
  • Tencent Asset Management Ltd.
  • Mount Qinling Investment Ltd.
  • Han River Investment Holdings Ltd.
  • Tencent Foundation
  • Oriental Power Holdings Ltd.
  • Ohio River Investment Ltd.
  • Miniclip Group SA
  • Image Technology Investment Ltd.
  • Mount Emei Investment Ltd.
  • Hongze Lake Investment Ltd.
  • Beijing Starsinhand Technology Co. Ltd.
  • THL A19 Ltd.
  • Shenzhen Tencent Industrial Investment Fund Co., Ltd.
  • Shanghai Icson E Commerce Development Co. Ltd.
  • Thl H Ltd.
  • Tencent America LLC
  • THL A1 Ltd.

Competitors

  • Baidu, Inc. Sponsored ADR Class A
  • SINA Corp.
  • Sohu.com, Inc.
  • Link Motion, Inc. Sponsored ADR Class A
  • LINE Corp.
  • NetEase, Inc. Sponsored ADR
  • Gravity Co., Ltd. Sponsored ADR
  • Alibaba Group Holding Ltd. Sponsored ADR
  • Rakuten, Inc.
  • YY, Inc. Sponsored ADR Class A
  • Changyou.com Ltd. Sponsored ADR Class A
  • V1 Group Limited
  • iQIYI, Inc. Sponsored ADR Class A
  • Phoenix New Media Ltd. Sponsored ADR Class A
  • BlackBerry Limited
  • NetDragon Websoft Holdings Limited
  • Ourpalm Co., Ltd. Class A
  • Gigamedia Limited
  • Xunlei Ltd. ADR
  • Snap, Inc. Class A
  • Zynga Inc. Class A
  • Danal Co., Ltd
  • Spotify Technology S.A.
  • Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co., Ltd. Class A
  • G5 Entertainment AB
  • The9 Ltd. Sponsored ADR
  • Aristocrat Leisure Limited
  • Netmarble Corp.
  • Renren Inc. Sponsored ADR Class A
  • LivePerson, Inc.
Last Updated on 20 Apr, 2018

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