Tencent Holdings Limited (HK:0700)
:0700
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Tencent Holdings
(0700)
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Rating:72Outperform
Price Target:
HK$567.00
▲(11.07% Upside)
Action:ReiteratedDate:04/18/26
The score is driven primarily by strong financial performance (re-accelerating revenue growth, expanding margins, and improving leverage), tempered by weaker technicals (price below key longer-term moving averages and negative MACD) and only moderate valuation support (P/E ~22 and a low ~0.9% dividend yield).
Positive Factors
Revenue growth & margin expansion
Sustained top-line re-acceleration and meaningful gross/net margin expansion indicate durable operating leverage and pricing power. That trend supports persistent earnings generation, funding for content, R&D and platform investment, and a stronger free-cash-flow runway over the coming months.
Negative Factors
Weak cash conversion
Material gap between accounting profit and cash generation suggests working-capital swings, investment timing or non-cash earnings items. Persistent subpar cash conversion limits internal funding for capex, content and buybacks, and raises sensitivity to liquidity stress over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth & margin expansion
Sustained top-line re-acceleration and meaningful gross/net margin expansion indicate durable operating leverage and pricing power. That trend supports persistent earnings generation, funding for content, R&D and platform investment, and a stronger free-cash-flow runway over the coming months.
Read all positive factors
Tencent Holdings (0700) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$4.46T
Dividend Yield0.75%
Average Volume (3M)17.35M
Price to Earnings (P/E)22.3
Beta (1Y)1.23
Revenue Growth13.92%
EPS Growth18.31%
CountryHK
Employees110,558
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)8.00
Shares Outstanding9,125,598,000
10 Day Avg. Volume16,885,946
30 Day Avg. Volume17,348,439
Financial Highlights & Ratios
PEG Ratio1.47
Price to Book (P/B)4.23
Price to Sales (P/S)6.67
P/FCF Ratio25.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$717.41Price Target Upside40.53% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering24
EPS Forecast (FY)30.12
Revenue Forecast (FY)HK$832.39B
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 primarily monetizes its ecosystem through a mix of value-added services, advertising, and business services. (1) Value-added services (VAS): A major revenue driver comes from domestic and international video games, where Tencent earns mone...
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
86
Very Positive
Balance Sheet
82
Very Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 732.31B | 660.26B | 609.01B | 554.55B | 560.12B |
| Gross Profit | 411.66B | 349.25B | 293.11B | 238.75B | 245.94B |
| EBITDA | 302.54B | 310.14B | 183.94B | 134.30B | 313.65B |
| Net Income | 219.02B | 194.07B | 115.22B | 188.24B | 224.82B |
Balance Sheet | |||||
| Total Assets | 2.04T | 1.79T | 1.58T | 1.56T | 1.61T |
| Cash, Cash Equivalents and Short-Term Investments | 433.92B | 341.57B | 375.91B | 288.13B | 264.35B |
| Total Debt | 406.57B | 357.94B | 370.14B | 354.07B | 322.89B |
| Total Liabilities | 798.26B | 733.37B | 708.09B | 788.90B | 735.46B |
| Stockholders Equity | 1.15T | 973.07B | 806.20B | 711.20B | 804.85B |
Cash Flow | |||||
| Free Cash Flow | 190.17B | 181.76B | 174.56B | 95.24B | 113.02B |
| Operating Cash Flow | 303.05B | 258.52B | 221.96B | 146.09B | 175.19B |
| Investing Cash Flow | -205.73B | -122.19B | -125.16B | -104.87B | -178.55B |
| Financing Cash Flow | -87.16B | -176.49B | -82.57B | -59.95B | 21.62B |
Tencent Holdings Technical Analysis
Neutral
510.50
Price Trends
525.55
Negative
568.92
Negative
582.42
Negative
Market Momentum
-7.13
Negative
49.47
Neutral
78.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0700, the sentiment is Neutral. The current price of 510.5 is above the 20-day moving average (MA) of 503.03, below the 50-day MA of 525.55, and below the 200-day MA of 582.42, indicating a neutral trend. The MACD of -7.13 indicates Negative momentum. The RSI at 49.47 is Neutral, neither overbought nor oversold. The STOCH value of 78.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$190.98B | 13.56 | 25.52% | ― | 12.62% | 22.16% | |
72 Outperform | HK$4.46T | 22.32 | 19.90% | 0.75% | 13.92% | 18.31% | |
72 Outperform | HK$105.63B | 17.65 | 13.77% | 1.01% | 15.94% | 69.62% | |
65 Neutral | HK$16.14B | -128.76 | 12.13% | 8.13% | 0.06% | 48.33% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
53 Neutral | HK$335.56B | 59.14 | 1.73% | ― | -3.02% | -81.33% | |
47 Neutral | HK$26.42B | -39.92 | -4.08% | ― | -9.16% | -273.98% |
* Communication Services Sector Average
HK:0700
Tencent Holdings
478.60
4.54
0.96%
HK:0772
China Literature
25.30
-0.70
-2.69%
HK:9888
Baidu, Inc. Class A
125.70
38.80
44.65%
HK:9898
Weibo Corp Class A
65.65
7.13
12.17%
HK:1024
Kuaishou Technology Class B
43.64
-6.68
-13.27%
HK:1698
Tencent Music Entertainment Group Class A
36.52
-14.16
-27.95%
Tencent Holdings Corporate Events
Tencent Sets 2026 AGM to Approve Dividend, Board Changes and New Share Mandate
Apr 9, 2026
Tencent Holdings has called its annual general meeting for 13 May 2026 in Hong Kong, where shareholders will review the audited financial statements for the year ended 31 December 2025 and vote on a proposed final dividend. The meeting will also a...
Tencent Grants Over 9.2 Million Share Options to Employees Under Incentive Scheme
Mar 25, 2026
Tencent Holdings has granted 9,203,153 share options to employee participants under its existing share option scheme, with each option carrying an exercise price of HKD516.78, slightly above the HKD505.50 closing share price on the March 25, 2026 ...
Tencent Grants 19 Million Share Awards to Employees Under Incentive Scheme
Mar 25, 2026
Tencent Holdings has granted 19,134,608 share awards to employee participants under its Share Award Scheme, representing about 0.21% of its issued share capital as of 25 March 2026. The awards, which are not subject to shareholder approval and exc...
Tencent Sets May Board Meeting to Review Q1 2026 Results and Dividend
Mar 23, 2026
Tencent Holdings has scheduled a board meeting for 13 May 2026 to review and approve its unaudited financial results for the first quarter ended 31 March 2026. The board will also consider the declaration of a potential dividend for shareholders, ...
Tencent posts double-digit 2025 profit and revenue growth, margins improve
Mar 18, 2026
Tencent Holdings reported solid growth for the year ended 31 December 2025, with revenues rising 14% to RMB 751.8 billion and gross profit climbing 21% to RMB 422.6 billion, underscoring improved operating efficiency. Full-year profit attributable...
Tencent Declares HKD 5.3 Final Dividend for 2025
Mar 18, 2026
Tencent Holdings Limited has declared a final ordinary dividend of HKD 5.3 per share for the financial year ended 31 December 2025, underscoring its capacity to return cash to shareholders from its core technology and internet operations. The divi...
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.