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Technology Services

Tencent Holdings Ltd.

  • 344.00 HKD
  • +1.00
  • +0.29%
  • China
    Sep 18, 2019
  • Ticker
    HKG(700)
  • Prev. close
    343.00
  • Market cap (HKD)
    3,277.48B
  • Market cap (USD)
    418,641.09M
  • Shares
    9,555.35M

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 and online advertising 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 in 1998 and is headquartered in Shenzhen, China.

Financial Highlights

Dec 2018 HKDUSD
Revenue370,371.62M47,256.07M
Gross Profit165,629.29M21,132.80M
Operating income90,450.82M11,540.70M
Income before tax110,129.33M14,051.50M
Net income93,239.02M11,896.45M
EBITDA130,736.46M16,680.79M
Diluted EPS9.741.24
Dividends Per Share10.12
Total Assets825,072.33M105,381.97M
Total liabilities418,869.14M53,499.86M
Total equity368,916.93M47,119.74M
Operating cash flow133,371.87M17,017.04M
Currency in HKDCurrency in USD

Historical Data

 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 99,338.25M 126,879.52M 177,527.17M 274,157.94M 370,371.62M
Gross Profit 59,129.49M 73,456.24M 96,672.61M 134,824.68M 165,629.29M
Operating income 32,856.42M 44,915.96M 58,308.75M 76,359.72M 90,450.82M
Income before tax 36,950.42M 48,116.84M 63,283.88M 100,772.87M 110,129.33M
Net income 29,965.58M 35,531.64M 48,016.15M 82,457.24M 93,239.02M
EBITDA 38,898.62M 53,092.70M 73,064.71M 103,424.97M 130,736.46M
Diluted EPS 3.20 3.76 5.05 8.64 9.74
Dividends Per Share 0.36 0.47 0.61 0.88 1
Total Assets 213,953.36M 366,189.09M 441,681.31M 665,853.41M 825,072.33M
Total liabilities 111,300.34M 220,462.02M 233,896.45M 333,218.41M 418,869.14M
Total equity 100,014.31M 143,262.48M 194,817.76M 307,402.83M 368,916.93M
Operating cash flow 84,804.75M 59,478.43M 79,399.88M 128,774.43M 133,371.87M
 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 12,810.09M 16,366.11M 22,869.97M 35,180.85M 47,256.07M
Gross Profit 7,625.00M 9,475.07M 12,453.86M 17,301.14M 21,132.80M
Operating income 4,236.97M 5,793.68M 7,511.63M 9,798.73M 11,540.70M
Income before tax 4,764.91M 6,206.56M 8,152.55M 12,931.50M 14,051.50M
Net income 3,864.19M 4,583.20M 6,185.69M 10,581.18M 11,896.45M
EBITDA 5,016.14M 6,848.39M 9,412.57M 13,271.83M 16,680.79M
Diluted EPS 0.41 0.48 0.65 1.10 1.24
Dividends Per Share 0.04 0.06 0.07 0.11 0.12
Total Assets 27,589.62M 47,249.28M 56,967.98M 85,176.90M 105,381.97M
Total liabilities 14,352.35M 28,446.16M 30,167.92M 42,625.76M 53,499.86M
Total equity 12,897.00M 18,485.12M 25,127.56M 39,323.40M 47,119.74M
Operating cash flow 10,935.94M 7,672.08M 10,228.70M 16,524.76M 17,017.04M

Valuation Measures

Dec 2018
PER31.80
ROA12.50%
ROE27.57%
Operating margin24.42%
Profit margin25.17%

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 (8.5%)
  • The Vanguard Group, Inc. (2.1%)
  • BlackRock Fund Advisors (1.2%)
  • T. Rowe Price Associates, Inc. (Investment Management) (1.0%)
  • Baillie Gifford & Co. (0.8%)
  • Norges Bank Investment Management (0.7%)
  • Capital Research & Management Co. (World Investors) (0.5%)
  • Fidelity Management & Research Co. (0.5%)
  • JPMorgan Investment Management, 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

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Competitors

  • Mail.ru Group Ltd. Sponsored GDR
  • LINE Corp.
  • Sohu.com Limited Sponsored ADR
  • Baidu, Inc. Sponsored ADR Class A
  • Link Motion, Inc. Sponsored ADR Class A
  • NetEase, Inc. Sponsored ADR
  • SINA Corp.
  • Alibaba Group Holding Ltd. Sponsored ADR
  • Electronic Arts Inc.
  • Ubisoft Entertainment SA
  • Phoenix New Media Ltd. Sponsored ADR Class A
  • BlackBerry Limited
  • Changyou.com Ltd. Sponsored ADR Class A
  • iQIYI, Inc. Sponsored ADR Class A
  • Gravity Co Ltd Sponsored ADR
  • Liquid Media Group Ltd.
  • Netmarble Corp.
  • Paradox Interactive AB
  • NetDragon Websoft Holdings Limited
  • DouYu International Holdings Ltd. Sponsored ADR
  • Facebook, Inc. Class A
  • Aristocrat Leisure Limited
  • Qutoutiao, Inc. Sponsored ADR Class A
  • Aurora Mobile Ltd. Sponsored ADR Class A
  • Snap, Inc. Class A
  • Xunlei Ltd. ADR
  • SciPlay Corp. Class A
  • Zynga Inc. Class A
  • Twitter, Inc.
  • Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd. Class A
Last Updated on 18 Sep, 2019

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