Professional
Added to YB: 2024-05-16
Pitch date: 2024-05-15
TCEHY [bullish]
Tencent Holdings Limited
+56.69%
current return
Author Info
No bio for this author
Company Info
Tencent Holdings Limited, an investment holding company, provides value-added services, marketing services, fintech, and business services in Mainland China and internationally.
Market Cap
HKD 5.1T
Pitch Price
HKD 393.14
Price Target
90.00 (-85%)
Dividend
0.73%
EV/EBITDA
17.71
P/E
23.99
EV/Sales
7.05
Sector
Interactive Media and Services
Category
growth
Tencent Holdings Limited: Clear Path to Margin Expansion
TCEHY: Q1 highlights room for monetization growth in WeChat via Video Accounts & search despite 1.3B users. New integrated services like these have high margin potential. Maintaining $90 FVE (55% upside) on 15-23% 5yr rev CAGR forecast across gaming, ads, fintech/cloud + expanding op margin. Wide moat from network effects, switching costs, intangibles. Key risks: regulation, competition from ByteDance. Exemplary mgmt capital allocation track record.
Read full article (13 min)