Tencent: Buying Opportunity
News of U.S. tariffs targeting China imports and a reduction in Naspers’ holdings in Tencent drove global equity markets. We view the current sell-off an opportunity to invest as the concerns on Tencent are overdone, as it aims to invest in new areas to sustain its high growth rate of the past years.
Tencent is domestic-focused and have little or no exposure to U.S., hence would be less likely to be affected by trade issues between China and US.
Tencent Holdings announced fourth-quarter 2017 results, detailing higher-than-expected earnings driven by the sustained momentum of its social media platforms, smartphone games, and wildly popular video-streaming services.
On an adjusted (non-GAAP) basis, which excludes non-cash items and acquisition expenses, profit attributable to shareholders grew 42% year over year to RMB 17.454 billion ($2.671 billion), or RMB 1.827 per diluted share ($0.28).
Tencent says it will "more aggressively invest" in 2018 with the aim of strengthening its positions in "areas including online video, payment services, cloud services, AI technologies, and smart retail."
Tencent is domestic-focused and have little or no exposure to U.S., hence would be less likely to be affected by trade issues between China and US.
Tencent Holdings announced fourth-quarter 2017 results, detailing higher-than-expected earnings driven by the sustained momentum of its social media platforms, smartphone games, and wildly popular video-streaming services.
On an adjusted (non-GAAP) basis, which excludes non-cash items and acquisition expenses, profit attributable to shareholders grew 42% year over year to RMB 17.454 billion ($2.671 billion), or RMB 1.827 per diluted share ($0.28).
Tencent says it will "more aggressively invest" in 2018 with the aim of strengthening its positions in "areas including online video, payment services, cloud services, AI technologies, and smart retail."
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