Tencent Holdings Ltd TCEHYCOMMENTJan 25, 2018Stock price when the opinion was issued
As of Jun 09, 2026. Market Open.
Important, because it's the super-app for the Chinese consumer. Has a gaming platform, chat platform, and moving into the AI sphere. Interesting equity, but you need to make a call on China as a whole.
Remember what happened when the finance arm of BABA was supposed to go public: CEO said some things, Chinese government stepped in, Ant Financial was pulled, stock price of BABA collapsed by 70%, CEO disappeared for a few months. During that time, Tencent all of a sudden had to make a large donation to charity -- not something you can forecast. By investing in Tencent, you have to sign up for that.
Otherwise, a great company. Well managed, well structured, and they own the Chinese consumer.
A great company, and he continues to like it. It’s basically a Chinese Internet and mobile value-added service type of company with gaming and online advertising services. A lot of their services are really intertwined. The 4th largest Internet Company globally. You are probably going to see well in excess of 30% long-term EPS growth. Forward PE is high at 37%, but if looking at growth rates 35% or higher, you are looking at a PEG ratio of 1.0, which is pretty cheap in the Tech space. Also, they have a much wider audience and a lot more runway than some of the US Internet companies.