Bullish on electric cars / automated driving? Tencent owns 5% of Tesla and a $1.6 billion stake in the Chinese up-start, NIO.
Bullish on e-Commerce / ePayment solutions / in-app payment? Tencent owns 20% of JD.com and a stake in Vipshop. They, of course, operate WeChat, QQZone and QQ - combined these have MAU of 980 million. Within each of these, they have finance solutions, the biggest being WeChat Pay - part of which is contributing to the 143% Year on Year revenue growth for their other business department (featuring their payment business and Cloud business).
Did you say you like The Cloud? Don't tell me that you like AI technology, too?
Tencent owns two AI startup labs. They also run Tencent Cloud - a cloud services provider that has access to the best advertisement machine in China: Tencent's (aforementioned) social media portfolio.
Now, I know what you're thinking right now:
"Who is this guy, u/snight, with all of these circumstantial and qualitative comments? This isn't fundamental analysis; this is bullshit!"
Well, to those of you who like to invest on more than just trends, let me posit this:
Apart from their massive moat, a wealth of investments and insane social media portfolio. (Oh, they also have 43 million subscribers to Tencent video and a growing investment into revenue based literature and music platforms). They also achieved 61% YoY quarterly revenue growth and 45% net profit growth. They have a P/E of only 60, and a forward P/E of 40. They also have USD 13 billion in cash. Ma Huateng - or, as I like to call him, the one true Ma - has silently, steadily and overwhelmingly built up an empire of investments upon layers upon layers of IP with access to one of the biggest user base in the world.
My last comment is food for thought, and to me, it summarises the entire philosophy of Tencent. You may know that WeChat is a social media platform, I haven't fully fleshed out how you can walk into a store, and (through WeChat) the automated payment technology can register what you pick up and charge it straight to your phone without you needing to talk to anyone or scan anything. What I haven't yet mentioned is Tencent's apps within apps. Tencent offers an in-app "app store", and they now offer more apps or "mini-apps" than Apple's AppStore..
Disclaimer: I am long Tencent CBBC's (Zero End Calls)
Apologies for the fractured nature of this post, it is late, I just wanted to share my thoughts with you all.
Submitted January 24, 2018 at 11:14AM by Snight http://ift.tt/2n8XUAl
