Tencent Holdings Ltd
HKEX:700

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Tencent Holdings Ltd
HKEX:700
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Price: 518 HKD 0.29% Market Closed
Market Cap: 4.8T HKD

Operating Margin
Tencent Holdings Ltd

31.3%
Current
25%
Average
2.2%
Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
31.3%
=
Operating Profit
213.1B
/
Revenue
680.8B

Operating Margin Across Competitors

Country Company Market Cap Operating
Margin
CN
Tencent Holdings Ltd
HKEX:700
4.8T HKD
31%
US
Alphabet Inc
NASDAQ:GOOGL
2T USD
33%
US
Meta Platforms Inc
NASDAQ:META
1.6T USD
43%
JP
LY Corp
XMUN:YOJ
45.2B EUR
14%
CN
Baidu Inc
NASDAQ:BIDU
29.4B USD
15%
CN
Kuaishou Technology
HKEX:1024
211.5B HKD
11%
JP
Z Holdings Corp
TSE:4689
3.8T JPY
14%
AU
REA Group Ltd
ASX:REA
33.3B AUD
42%
US
Pinterest Inc
NYSE:PINS
20.9B USD
5%
KR
Naver Corp
KRX:035420
27.3T KRW
18%
US
Snap Inc
NYSE:SNAP
13.9B USD
-12%

Tencent Holdings Ltd
Glance View

Economic Moat
Narrow
Market Cap
4.8T 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
525.82 HKD
Undervaluation 1%
Intrinsic Value
Price
What is Operating Margin?

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
31.3%
=
Operating Profit
213.1B
/
Revenue
680.8B
What is the Operating Margin of Tencent Holdings Ltd?

Based on Tencent Holdings Ltd's most recent financial statements, the company has Operating Margin of 31.3%.

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