Financials Tencent Holdings Limited

Equities

700 KYG875721634

Internet Services

Market Closed - Hong Kong S.E. Other stock markets 04:08:20 2024-05-14 am EDT			5-day change	1st Jan Change
381.8 ^HKD	+0.95%		+4.37%	+30.04%

10:54am	Chinese EV maker Aiways to go public in US via deal with Hudson Acquisition SPAC	RE
10:43am	Jefferies Adjusts Tencent Holdings’ Price Target to HK$475 From HK$453, Keeps at Buy	MT

Valuation

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	3,187,363	4,520,554	3,550,845	2,775,430	2,495,851	3,280,577	-	-
Enterprise Value (EV) ¹	3,171,811	4,531,617	3,530,602	2,760,598	2,550,591	3,130,474	2,987,983	2,728,747
P/E ratio	34.8 x	28.7 x	16.1 x	15.3 x	22.4 x	21.5 x	18.5 x	16.1 x
Yield	0.32%	0.28%	0.35%	0.81%	1.17%	1.18%	1.16%	1.28%
Capitalization / Revenue	8.45 x	9.38 x	6.34 x	5 x	4.1 x	4.94 x	4.46 x	4.08 x
EV / Revenue	8.41 x	9.4 x	6.3 x	4.98 x	4.19 x	4.71 x	4.06 x	3.4 x
EV / EBITDA	23.1 x	26.6 x	20.4 x	16.8 x	10.8 x	12.1 x	10.6 x	8.9 x
EV / FCF	27.3 x	28.3 x	24.9 x	21.6 x	12.9 x	18.2 x	14 x	12.6 x
FCF Yield	3.66%	3.53%	4.02%	4.64%	7.77%	5.5%	7.16%	7.92%
Price to Book	7.45 x	6.4 x	4.4 x	3.9 x	3.12 x	3.47 x	3 x	2.72 x
Nbr of stocks (in thousands)	9,495,729	9,523,125	9,540,009	9,408,797	9,352,822	9,281,238	-	-
Reference price ²	335.7	474.7	372.2	295.0	266.9	353.5	353.5	353.5
Announcement Date	3/18/20	3/24/21	3/23/22	3/22/23	3/20/24	-	-	-

¹CNY in Million²CNY

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	377,289	482,064	560,118	554,552	609,015	664,530	735,268	803,476
EBITDA ¹	137,268	170,680	173,173	164,037	235,454	258,061	280,692	306,772
EBIT ¹	118,694	184,237	271,620	235,706	160,074	205,992	234,043	260,306
Operating Margin	31.46%	38.22%	48.49%	42.5%	26.28%	31%	31.83%	32.4%
Earnings before Tax (EBT) ¹	109,400	180,022	248,062	210,225	161,324	207,414	234,851	266,475
Net income ¹	93,310	159,847	224,822	188,243	115,216	155,359	180,775	206,170
Net margin	24.73%	33.16%	40.14%	33.95%	18.92%	23.38%	24.59%	25.66%
EPS ²	9.643	16.52	23.16	19.34	11.89	16.48	19.06	21.96
Free Cash Flow ¹	116,221	160,159	141,794	128,077	198,069	172,283	213,921	216,086
FCF margin	30.8%	33.22%	25.32%	23.1%	32.52%	25.93%	29.09%	26.89%
FCF Conversion (EBITDA)	84.67%	93.84%	81.88%	78.08%	84.12%	66.76%	76.21%	70.44%
FCF Conversion (Net income)	124.55%	100.2%	63.07%	68.04%	171.91%	110.89%	118.34%	104.81%
Dividend per Share ²	1.089	1.344	1.298	2.400	3.129	4.174	4.114	4.529
Announcement Date	3/18/20	3/24/21	3/23/22	3/22/23	3/20/24	-	-	-

¹CNY in Million²CNY

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	2021 Q4	2022 Q1	2022 Q2	2022 Q3	2022 Q4	2023 Q1	2023 Q2	2023 Q3	2023 Q4	2024 Q1	2024 Q2	2024 Q3	2024 Q4	2025 Q1	2025 Q2
Net sales ¹	144,188	135,471	134,034	140,093	144,954	149,986	149,208	154,625	155,196	159,501	162,130	169,200	171,596	-	-
EBITDA ¹	36,568	38,283	38,628	43,124	44,002	52,656	56,848	61,301	59,494	69,259	61,522	64,627	65,083	-	-
EBIT ¹	109,723	37,217	30,067	51,593	116,829	40,429	40,300	48,475	41,401	58,619	50,363	54,370	53,871	-	-
Operating Margin	76.1%	27.47%	22.43%	36.83%	80.6%	26.96%	27.01%	31.35%	26.68%	36.75%	31.06%	32.13%	31.39%	-	-
Earnings before Tax (EBT) ¹	99,593	29,002	23,798	45,946	111,479	37,859	38,168	47,789	37,508	56,820	50,173	54,582	55,648	-	-
Net income ¹	94,958	23,413	18,619	39,943	106,268	25,838	26,171	36,182	27,025	41,889	40,348	46,798	45,217	-	-
Net margin	65.86%	17.28%	13.89%	28.51%	73.31%	17.23%	17.54%	23.4%	17.41%	26.26%	24.89%	27.66%	26.35%	-	-
EPS ²	9.788	2.404	1.915	4.104	10.98	2.639	2.695	3.752	2.807	4.386	3.888	4.275	4.248	-	-
Dividend per Share	1.600	-	-	-	2.400	-	-	-	3.129	-	-	-	-	-	-
Announcement Date	3/23/22	5/18/22	8/17/22	11/16/22	3/22/23	5/17/23	8/16/23	11/15/23	3/20/24	5/14/24	-	-	-	-	-

¹CNY in Million²CNY

Estimates

Balance Sheet Analysis

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	-	11,063	-	-	54,740	-	-	-
Net Cash position ¹	15,552	-	20,243	14,832	-	150,104	292,594	551,831
Leverage (Debt/EBITDA)	-	0.0648 x	-	-	0.2325 x	-	-	-
Free Cash Flow ¹	116,221	160,159	141,794	128,077	198,069	172,283	213,921	216,086
ROE (net income / shareholders' equity)	24.7%	28.1%	29.8%	24.6%	15.1%	19.4%	18.7%	19%
ROA (Net income/ Total Assets)	11.1%	14%	15.3%	11.8%	7.3%	10.7%	10.4%	10.8%
Assets ¹	838,757	1,143,725	1,472,890	1,595,253	1,577,696	1,455,494	1,743,661	1,916,374
Book Value Per Share ²	45.10	74.20	84.60	75.70	85.50	102.0	118.0	130.0
Cash Flow per Share ²	15.50	20.10	18.10	15.10	23.10	22.20	26.50	31.10
Capex ¹	32,369	33,960	33,392	18,014	23,893	35,514	38,634	41,282
Capex / Sales	8.58%	7.04%	5.96%	3.25%	3.92%	5.34%	5.25%	5.14%
Announcement Date	3/18/20	3/24/21	3/23/22	3/22/23	3/20/24	-	-	-

¹CNY in Million²CNY

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for Tencent Holdings Limited

Trading Rating

Investor Rating

ESG Refinitiv

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

BUY

Number of Analysts

Last Close Price

353.5 CNY

Average target price

400.6 CNY

Spread / Average Target

+13.33%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

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