Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Hong Kong
  4. Hong Kong Stock Exchange
  5. Tencent Holdings Limited
  6. News
  7. Summary
    700   KYG875721634

TENCENT HOLDINGS LIMITED

(700)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Tencent-backed Waterdrop slumps in NYSE debut

05/07/2021 | 12:29pm EDT
Shen Peng, founder and CEO of Chinese online insurance technology firm Waterdrop Inc, speaks during an interview with Reuters in Beijing

BEIJING (Reuters) - Shares of Chinese gaming giant Tencent-backed online insurance technology firm Waterdrop Inc tumbled 14.5% in their New York debut on Friday.

American depositary shares of the company opened at $10.25, before recovering to $11.50. The shares were priced at $12 apiece in the IPO, raising $360 million through the stock sale.

Waterdrop's founder and chief executive, in an interview with Reuters earlier in the day, said the company would focus more on user growth than on profit in the short term.

The company aims to be China's version of UnitedHealth Group in a decade and has no plan to revive its once popular mutual aid service, Shen Peng said.

The loss-making company will focus until 2025 on growing its online insurance business in China, and would like to expand further into healthcare businesses in 10 years' time in the country, Shen said. UnitedHealth is the biggest U.S. health insurer.

"Currently becoming profitable is not our priority," said Shen, adding that growth and serving more users was more important in the short term.

Waterdrop's stock market debut was seen as a key test of investor appetite for Chinese fintech companies amid a regulatory crackdown that started after the halting of Ant Group's IPO last November.

Waterdrop doesn't plan to restore its mutual aid service, which was shut down in March and had provided 80 million users with shared basic health plan covering critical illnesses, as Shen believes such services are out of fashion and cost-effective insurance policies underwritten by insurance carriers will prevail in China's lower-tier cities.

China's financial regulators have said since late last year that all financial activities needed to be overseen by regulators and all businesses needed to be licensed to operate.

Last month, Chinese financial regulators said that they would step up efforts to regulate fintech companies that have offshore public listing plans.

Shen said that the company started to proactively communicate with regulators when it first had the IPO idea and kept talking with regulators at every step of the IPO process.

"Regulators have expressed that they are delighted to see innovative companies obtain public listings as long as the companies' operations comply with regulations," Shen said.

Founded in 2016 by Shen, a former executive at Chinese food delivery giant Meituan, Waterdrop was valued at about $2 billion in a pre-IPO funding round last August. It also counts reinsurer Swiss Re, Boyu Capital, and Meituan as investors.

Beijing-based Waterdrop's remaining core businesses include distributing insurance policies online and providing illness crowd-funding.

The company said in its filing that its revenue hit 3 billion yuan ($464.43 million), an increase of over 100% year on year.

($1 = 6.4596 Chinese yuan renminbi)

(Reporting by Yingzhi Yang and Tony Munroe in Beijing; Additional reporting by Medha Singh in Bengaluru; Editing by Sumeet Chatterjee, Muralikumar Anantharaman and Sriraj Kalluvila)

By Yingzhi Yang and Tony Munroe


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
MEITUAN 2.27% 315 End-of-day quote.6.92%
SWISS RE LTD -0.35% 84.78 Delayed Quote.2.09%
TENCENT HOLDINGS LIMITED 0.09% 583 End-of-day quote.3.37%
UNITED STATES DOLLAR (B) / CHINESE YUAN IN HONG KONG (USD/CNH) -0.23% 6.45302 Delayed Quote.-0.42%
UNITEDHEALTH GROUP 0.13% 399.02 Delayed Quote.12.80%
All news about TENCENT HOLDINGS LIMITED
03:04aMIRRIAD ADVERTISING  : Extends Advertising Deal With China's Tencent
MT
01:03aMirriad Advertising Renews Tencent Holdings Contract
DJ
06/24EQS-NEWS  : GIB Global Investment Digital Bank To Bid For Digital Banking Licenc..
DJ
06/24China to Ease Restrictions on Used-Car Trading
MT
06/24Chinese Ride-Hailing Giant Didi to Raise Up to $4 Billion in NYSE IPO
MT
06/24MARKET CHATTER : Ant-backed Bike-Sharing Company Hello Postpones US IPO
MT
06/24SOFTBANK  : Chinese firm Didi's $4 bln IPO books covered on first day of bookbui..
RE
06/24INTERNATIONAL BUSINESS MACHINES  : Global Digital Currency Market May See a Big ..
AQ
06/23EQS-NEWS  : Maps.me Announces New Cashback Partnership with Booking.com Leading ..
DJ
06/23TENCENT  : to Acquire Majority Stake in German Game Developer Yager
MT
More news
Financials
Sales 2021 591 B 91 583 M 91 583 M
Net income 2021 150 B 23 174 M 23 174 M
Net cash 2021 116 B 17 987 M 17 987 M
P/E ratio 2021 31,5x
Yield 2021 0,33%
Capitalization 4 751 B 734 B 736 B
EV / Sales 2021 7,84x
EV / Sales 2022 6,38x
Nbr of Employees 89 228
Free-Float 62,4%
Chart TENCENT HOLDINGS LIMITED
Duration : Period :
Tencent Holdings Limited Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends TENCENT HOLDINGS LIMITED
Short TermMid-TermLong Term
TrendsBearishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 52
Last Close Price 486,02 CNY
Average target price 626,84 CNY
Spread / Average Target 29,0%
EPS Revisions
Managers and Directors
Hua Teng Ma Executive Chairman & Chief Executive Officer
Chi Ping Lau President & Executive Director
Shek Hon Lo Chief Financial Officer & Senior Vice President
Chen Ye Xu Chief Information Officer
Yu Xin Ren COO & President-Interactive Entertainment Group
Sector and Competitors
1st jan.Capitalization (M$)
TENCENT HOLDINGS LIMITED3.37%714 469
NETFLIX, INC.-4.19%229 709
PROSUS N.V.-7.45%157 676
UBER TECHNOLOGIES, INC.-0.35%94 857
AIRBNB, INC.2.68%91 692
NASPERS LIMITED-2.62%85 071