Tencent Holdings Limited (HK:0700)
:0700
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Tencent Holdings
(0700)
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Rating:65Neutral
Price Target:
HK$656.00
▲(32.10% Upside)
Action:DowngradedDate:11/24/25
Tencent Holdings receives an overall stock score of 65, primarily driven by strong financial performance (score: 78) with high profitability and a stable balance sheet, though tempered by cash flow concerns. Positive earnings call sentiment (score: 80) adds support with robust growth in key segments. However, bearish technical indicators (score: 45) signal short-term weakness, and a neutral valuation (score: 60) limits upside potential. Financial strength remains the most significant factor in this assessment.
Positive Factors
Revenue Growth
Tencent's strong revenue growth indicates robust demand across its segments, showcasing effective business strategies and market expansion.
Negative Factors
Increased Expenses
Rising expenses could pressure margins and profitability, necessitating careful cost management to sustain long-term financial health.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Tencent's strong revenue growth indicates robust demand across its segments, showcasing effective business strategies and market expansion.
Read all positive factors
Tencent Holdings (0700) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$4.49T
Dividend Yield0.75%
Average Volume (3M)17.35M
Price to Earnings (P/E)22.3
Beta (1Y)1.22
Revenue Growth13.15%
EPS Growth30.78%
CountryHK
Employees110,558
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)7.94
Shares Outstanding9,125,000,000
10 Day Avg. Volume16,885,946
30 Day Avg. Volume17,348,439
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)3.73
Price to Sales (P/S)5.50
P/FCF Ratio19.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$723.62Price Target Upside45.72% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering24
EPS Forecast (FY)30.25
Revenue Forecast (FY)HK$832.76B
Tencent Holdings Business Overview & Revenue Model
Company Description
Tencent Holdings Limited, an investment holding company, provides value-added services (VAS) and Online advertising services in Mainland China and internationally. The company operates through VAS, Online Advertising, FinTech and Business Services...
How the Company Makes Money
Tencent generates revenue through several key streams. The largest portion comes from its online gaming segment, which includes both self-developed games and distribution of games developed by third parties. Social networks, primarily driven by We...
Tencent Holdings Earnings Call Summary
Earnings Call Date:Nov 13, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Positive
Tencent reported strong financial growth across multiple segments, particularly in gaming and marketing services, driven by strategic investments in AI and technology. However, challenges such as delays in content releases and increased expenses were noted.Positive Updates
Strong Financial Performance
Total revenue was RMB 193 billion, up 15% year-on-year. Gross profit increased by 22% year-on-year to RMB 109 billion. Non-IFRS operating profit was RMB 73 billion, up 18% year-on-year.
Negative Updates
Long-form Video Subscription Decline
Long-form video subscription revenue decreased 3% year-on-year due to a delay in the release of a drama series.
Read all updates
Q3-2025 Updates
Positive
Negative
Strong Financial Performance
Total revenue was RMB 193 billion, up 15% year-on-year. Gross profit increased by 22% year-on-year to RMB 109 billion. Non-IFRS operating profit was RMB 73 billion, up 18% year-on-year.
Read all positive updates
Company Guidance
During the 2025 third quarter results announcement webinar for Tencent Holdings, the company reported a solid performance across various metrics. Total revenue reached RMB 193 billion, marking a 15% year-on-year increase, while gross profit soared to RMB 109 billion, reflecting a 22% rise. Non-IFRS operating profit was RMB 73 billion, up 18% year-on-year, with net profit attributable to equity holders also increasing by the same percentage to RMB 71 billion. The company highlighted robust growth in its gaming sector, with Delta Force ranking among China's top three games by gross receipts. International games revenue surged by 43% year-on-year, driven by new releases and acquisitions. Marketing services revenue grew by 21% year-on-year, supported by enhanced ad targeting through AI technologies. The company also emphasized the expansion of its AI capabilities, including the Hunyuan foundation model, contributing to efficiency improvements and innovation in ad targeting and game engagement. Additionally, Tencent's core communication and social networks services, Weixin and WeChat, saw their combined MAU grow to 1.4 billion, further solidifying their market presence.Tencent Holdings Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 701.27B | 660.26B | 609.01B | 554.55B | 560.12B | 482.06B |
| Gross Profit | 380.28B | 349.25B | 293.11B | 238.75B | 245.94B | 221.53B |
| EBITDA | 266.37B | 310.14B | 183.94B | 134.30B | 313.65B | 238.25B |
| Net Income | 207.13B | 194.07B | 115.22B | 188.24B | 224.82B | 159.85B |
Balance Sheet | ||||||
| Total Assets | 2.01T | 1.79T | 1.58T | 1.56T | 1.61T | 1.33T |
| Cash, Cash Equivalents and Short-Term Investments | 380.44B | 341.57B | 375.91B | 288.13B | 264.35B | 229.83B |
| Total Debt | 412.49B | 357.94B | 370.14B | 354.07B | 322.89B | 261.82B |
| Total Liabilities | 810.46B | 733.37B | 708.09B | 788.90B | 735.46B | 555.50B |
| Stockholders Equity | 1.11T | 973.07B | 806.20B | 711.20B | 804.85B | 702.25B |
Cash Flow | ||||||
| Free Cash Flow | 173.56B | 181.76B | 174.56B | 95.24B | 113.02B | 127.52B |
| Operating Cash Flow | 283.33B | 258.52B | 221.96B | 146.09B | 175.19B | 194.12B |
| Investing Cash Flow | -149.15B | -122.19B | -125.16B | -104.87B | -178.55B | -181.96B |
| Financing Cash Flow | -106.82B | -176.49B | -82.57B | -59.95B | 21.62B | 13.65B |
Tencent Holdings Technical Analysis
Negative
496.60
Price Trends
546.68
Negative
583.02
Negative
582.77
Negative
Market Momentum
-15.54
Positive
34.05
Neutral
9.91
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0700, the sentiment is Negative. The current price of 496.6 is below the 20-day moving average (MA) of 519.75, below the 50-day MA of 546.68, and below the 200-day MA of 582.77, indicating a bearish trend. The MACD of -15.54 indicates Positive momentum. The RSI at 34.05 is Neutral, neither overbought nor oversold. The STOCH value of 9.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0700.
Tencent Holdings Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | HK$201.73B | 13.56 | 25.44% | ― | 11.37% | 16.74% | |
73 Outperform | HK$102.77B | 17.65 | 14.05% | 1.01% | 13.62% | 80.52% | |
67 Neutral | HK$26.86B | -4.73 | -4.08% | ― | -10.26% | -85.75% | |
65 Neutral | HK$4.49T | 22.32 | 20.51% | 0.75% | 13.15% | 30.78% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | HK$16.73B | 5.39 | 12.13% | 8.13% | -1.40% | 22.37% | |
53 Neutral | HK$289.19B | 59.14 | 2.02% | ― | -2.92% | -57.12% |
* Communication Services Sector Average
HK:0700
Tencent Holdings
496.60
-3.04
-0.61%
HK:0772
China Literature
26.30
-0.10
-0.38%
HK:9888
Baidu, Inc. Class A
109.60
19.60
21.78%
HK:9898
Weibo Corp Class A
68.50
0.50
0.74%
HK:1024
Kuaishou Technology Class B
46.20
-10.87
-19.05%
HK:1698
Tencent Music Entertainment Group Class A
36.48
-17.47
-32.38%
Tencent Holdings Corporate Events
Tencent Sets March 2026 Board Meeting to Approve 2025 Results and Consider Dividend
Dec 23, 2025
Tencent Holdings has scheduled a board meeting for 18 March 2026 to review and approve its annual results for the financial year ending 31 December 2025. The board will also consider the recommendation of a final dividend, signaling upcoming decis...
Tencent Grants Shares to Employees Under Award Scheme
Nov 14, 2025
Tencent Holdings announced the grant of 1,588,368 awarded shares to employee participants under its Share Award Scheme, representing approximately 0.0174% of the total shares in issue. This initiative, not requiring shareholder approval, aims to i...
Tencent Grants Share Options to Employees to Boost Engagement
Nov 14, 2025
Tencent Holdings announced the grant of 20,287 options to subscribe for shares to its employee participants under its Share Option Scheme. This move is aimed at retaining, incentivizing, and rewarding employees, encouraging their continued contrib...
Tencent Holdings Reports Strong Financial Growth in Q3 2025
Nov 13, 2025
Tencent Holdings announced its unaudited consolidated financial results for the three and nine months ending September 30, 2025, showing a strong performance with significant year-on-year growth. The company reported a 15% increase in quarterly re...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.