Technology Services
Tencent Holdings Ltd.
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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 holding company. It operates through the following segments: Value-Added Services, FinTech and Business 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 FinTech and Business Services segment provides fintech and cloud services, which include commissions from payment, wealth management and other services. 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 11, 1998 and is headquartered in Shenzhen, China.
Financial Highlights
| Dec 2019 | HKD | USD |
| Revenue | 427,814.21M | 54,601.58M |
| Gross Profit | 188,022.62M | 23,997.17M |
| Operating income | 105,103.85M | 13,414.31M |
| Income before tax | 125,956.57M | 16,075.73M |
| Net income | 105,805.74M | 13,503.90M |
| EBITDA | 155,650.44M | 19,865.54M |
| Diluted EPS | 11.01 | 1.40 |
| Dividends Per Share | 1.20 | 0.15 |
| Total Assets | 1,067.12B | 136,954.79M |
| Total liabilities | 520,328.07M | 66,778.93M |
| Total equity | 484,022.94M | 62,119.52M |
| Operating cash flow | 169,455.88M | 21,627.51M |
| Currency in HKD | Currency in USD |
Historical Data
| Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 | |
| Revenue | 126,879.52M | 177,527.17M | 274,157.94M | 370,371.62M | 427,814.21M |
| Gross Profit | 73,456.24M | 96,672.61M | 134,824.68M | 165,629.29M | 188,022.62M |
| Operating income | 44,915.96M | 58,308.75M | 76,359.72M | 90,450.82M | 105,103.85M |
| Income before tax | 48,116.84M | 63,283.88M | 100,772.87M | 110,129.33M | 125,956.57M |
| Net income | 35,531.64M | 48,016.15M | 82,457.24M | 93,239.02M | 105,805.74M |
| EBITDA | 53,092.70M | 73,064.71M | 103,424.97M | 130,736.46M | 155,650.44M |
| Diluted EPS | 3.76 | 5.05 | 8.64 | 9.74 | 11.01 |
| Dividends Per Share | 0.47 | 0.61 | 0.88 | 1 | 1.20 |
| Total Assets | 366,189.09M | 441,681.31M | 665,853.41M | 825,072.33M | 1,067.12B |
| Total liabilities | 220,462.02M | 233,896.45M | 333,218.41M | 418,869.14M | 520,328.07M |
| Total equity | 143,262.48M | 194,817.76M | 307,402.83M | 368,916.93M | 484,022.94M |
| Operating cash flow | 59,478.43M | 79,399.88M | 128,774.43M | 133,371.87M | 169,455.88M |
| Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 | |
| Revenue | 16,366.11M | 22,869.97M | 35,180.85M | 47,256.07M | 54,601.58M |
| Gross Profit | 9,475.07M | 12,453.86M | 17,301.14M | 21,132.80M | 23,997.17M |
| Operating income | 5,793.68M | 7,511.63M | 9,798.73M | 11,540.70M | 13,414.31M |
| Income before tax | 6,206.56M | 8,152.55M | 12,931.50M | 14,051.50M | 16,075.73M |
| Net income | 4,583.20M | 6,185.69M | 10,581.18M | 11,896.45M | 13,503.90M |
| EBITDA | 6,848.39M | 9,412.57M | 13,271.83M | 16,680.79M | 19,865.54M |
| Diluted EPS | 0.48 | 0.65 | 1.10 | 1.24 | 1.40 |
| Dividends Per Share | 0.06 | 0.07 | 0.11 | 0.12 | 0.15 |
| Total Assets | 47,249.28M | 56,967.98M | 85,176.90M | 105,381.97M | 136,954.79M |
| Total liabilities | 28,446.16M | 30,167.92M | 42,625.76M | 53,499.86M | 66,778.93M |
| Total equity | 18,485.12M | 25,127.56M | 39,323.40M | 47,119.74M | 62,119.52M |
| Operating cash flow | 7,672.08M | 10,228.70M | 16,524.76M | 17,017.04M | 21,627.51M |
Valuation Measures
| Dec 2019 | |
| PER | 33.61 |
| ROA | 11.18% |
| ROE | 24.80% |
| Operating margin | 24.56% |
| Profit margin | 24.73% |
Key executives
- 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
Shareholders
- Naspers Ltd. (30.9%)
- MA HUA TENG PONY (8.4%)
- The Vanguard Group, Inc. (2.1%)
- BlackRock Fund Advisors (1.0%)
- Temasek Holdings Pte Ltd. (Investment Management) (0.8%)
- Baillie Gifford & Co. (0.8%)
- Norges Bank Investment Management (0.8%)
- Fidelity Management & Research Co. LLC (0.7%)
- T. Rowe Price Associates, Inc. (Investment Management) (0.7%)
- JPMorgan Investment Management, Inc. (0.5%)
Contact Details
- Website:http://www.tencent.com
- Address: Tencent Binhai Towers, No. 33 Haitian 2nd Road, Shenzhen, 518054, China
- Phone: +86.755.8601.3388
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Competitors
- Mail.ru Group Ltd. Sponsored GDR
- LINE Corp.
- Sohu.com Limited Sponsored ADR
- NetEase, Inc
- SINA Corp.
- Alibaba Group Holding Ltd.
- iQIYI, Inc. Sponsored ADR Class A
- Electronic Arts Inc.
- Baidu, Inc. Sponsored ADR Class A
- Phoenix New Media Ltd. Sponsored ADR Class A
- Gravity Co., Ltd. Sponsored ADR
- Starbreeze AB
- Netmarble Corp.
- Frontier Developments Plc
- NetDragon Websoft Holdings Limited
- Tian Ge Interactive Holdings Ltd
- DouYu International Holdings Ltd. Sponsored ADR
- Facebook, Inc. Class A
- Qutoutiao, Inc. Sponsored ADR Class A
- Aurora Mobile Ltd. Sponsored ADR Class A
- Xunlei Ltd. ADR
- SciPlay Corp. Class A
- Zynga Inc. Class A
- 36Kr Holdings Inc ADR Class A
- Snap, Inc. Class A
- Twitter, Inc.
- Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd. Class A
- Zhejiang Jinke Culture Industry Co., Ltd. Class A
- Spotify Technology SA
- ChinaCache International Holdings Ltd. Sponsored ADR
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Last Updated on 15 Jul, 2020