Tencent Holdings Ltd
HKEX:700

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Tencent Holdings Ltd
HKEX:700
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Price: 509.5 HKD -0.1% Market Closed
Market Cap: 4.7T HKD

Net Margin
Tencent Holdings Ltd

29.4%
Current
29%
Average
-0.4%
Industry

Net Margin measures how much net income is generated as a percentage of revenues received. It helps investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Net Margin
29.4%
=
Net Income
200B
/
Revenue
680.8B

Net Margin Across Competitors

Country Company Market Cap Net
Margin
CN
Tencent Holdings Ltd
HKEX:700
4.7T HKD
29%
US
Alphabet Inc
NASDAQ:GOOGL
2.1T USD
31%
US
Meta Platforms Inc
NASDAQ:META
1.8T USD
39%
JP
LY Corp
XMUN:YOJ
44.3B EUR
8%
CN
Kuaishou Technology
HKEX:1024
258.5B HKD
12%
CN
Baidu Inc
NASDAQ:BIDU
30.8B USD
19%
JP
Z Holdings Corp
TSE:4689
3.7T JPY
8%
US
Pinterest Inc
NYSE:PINS
23.4B USD
50%
KR
Naver Corp
KRX:035420
31.3T KRW
17%
AU
REA Group Ltd
ASX:REA
31.3B AUD
33%
KR
Kakao Corp
KRX:035720
23.4T KRW
2%

Tencent Holdings Ltd
Glance View

Economic Moat
Narrow
Market Cap
4.7T HKD
Industry
Media

Tencent Holdings Ltd., a behemoth in the world of technology, epitomizes the synergy between innovation and monetization in the digital age. Founded in 1998 by Ma Huateng, also known as Pony Ma, Tencent has its roots deeply embedded in the rich soil of China's burgeoning internet sector. The company's initial breakthrough came with its instant messaging platform, QQ, which quickly became a household name across the country. This early success laid the groundwork for WeChat, Tencent's flagship social media app, which has since revolutionized the way Chinese people communicate and transact, blending features of messaging, social networking, e-commerce, and financial services seamlessly. WeChat's integration into daily life—not only as a communication tool but also as a platform for mobile payments and financial services—anchors Tencent's broad diversification strategy, making it an indispensable part of modern urban Chinese life. The financial alchemy behind Tencent's success lies in its multifaceted revenue streams. The company derives a significant portion of its income through its gaming division, regarded as its cash cow, which includes blockbuster titles such as "Honor of Kings" and "PUBG Mobile." These games attract millions of players globally, generating extensive value through in-game purchases. Beyond gaming and social media, Tencent has leveraged its massive user base to venture into digital advertising, cloud computing, and fintech. The strategic investments in a wide array of sectors, including a stake in companies such as Tesla and Spotify, further bolster its financial robustness and market reach. This blend of organic and inorganic growth strategies crafts a compelling narrative of a company that thrives on creating interconnected ecosystems, seamlessly integrating daily consumer experiences with its expansive digital services.

Intrinsic Value
530.33 HKD
Undervaluation 4%
Intrinsic Value
Price
What is Net Margin?

Net Margin measures how much net income is generated as a percentage of revenues received. It helps investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Net Margin
29.4%
=
Net Income
200B
/
Revenue
680.8B
What is the Net Margin of Tencent Holdings Ltd?

Based on Tencent Holdings Ltd's most recent financial statements, the company has Net Margin of 29.4%.

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