Asia300

Tencent Holdings Ltd.

China

  • 1m
  • 3m
  • 6m
  • 1y
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Aug 18, 2017
Prev close: 325.8
Aug 18, 2017
Market cap:
Market cap(USD):
3,094.44B
395,598.18M
Shares: 9,497.99M

Currency in HKD

Company profile

Market(Ticker): HKG(700)
Sector:
Industry:
Technology Services
Internet Software/Services
Full time employees: 38,775

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 96,672.61M
Operating income 58,308.75M
Income before tax 63,283.88M
Net income 48,016.15M
EBITDA 73,064.71M
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 79,399.88M

Currency in HKD

Revenue 22,869.97M
Gross profit 12,453.86M
Operating income 7,511.63M
Income before tax 8,152.55M
Net income 6,185.69M
EBITDA 9,412.57M
Diluted EPS 0.65
Dividends per share 0.07
Total assets 56,967.98M
Total liabilities 30,167.92M
Total equity 25,127.56M
Operating cash flow 10,228.70M

Currency in USD

Valuation measures

Dec 2016

PER 37.04
ROA 11.88%
ROE 28.40%
Operating margin 32.84%
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.(33.1%)
  • MA HUA TENG PONY(8.7%)
  • The Vanguard Group, Inc.(1.9%)
  • BlackRock Fund Advisors(1.1%)
  • Capital Research & Management Co. (World Investors)(0.8%)
  • Norges Bank Investment Management(0.7%)
  • T. Rowe Price Associates, Inc.(0.7%)
  • Schroder Investment Management Ltd.(0.6%)
  • OppenheimerFunds, Inc.(0.6%)
  • Capital Research & Management Co. (Global Investors)(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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