Tencents last share price breakthrough of HK $470 was at the beginning of 2018, more than two years later. Driven by the outbreak of game business and other factors during the epidemic, Tencent once again set a new share price record.
It is worth noting that Tencents share price has risen by more than 45% in just three months since its low on March 19 this year, with a net market value increase of HK $1.4 trillion.
According to the current 8.42% stake of Ma Huateng, Ma Huateng has a fortune of US $52.2 billion, ranking as the richest person in China, nearly US $7 billion more than Huang Zheng.
Why can Tencents share price be unique? There are at least three reasons behind this:
Strong financial data
On May 13, Tencent released its financial report for the first quarter of 2020, which showed that the operating revenue of the quarter was 108 billion yuan, an increase of 26% year-on-year; the net profit was 27.079 billion yuan, an increase of 29% year-on-year, both exceeding market expectations.
In this beautiful financial report, securities companies are optimistic about Tencent group. Investment banks such as daimo and Credit Suisse set the target price of Tencent holdings at HK $500, among which daimo stressed that it could reach HK $642 under optimistic conditions. Citic securities offered a target price of HK $480.
If Tencents share price can reach HK $500 as expected by the investment bank, Tencents market value will reach HK $4.8 trillion, which is expected to surpass Alibaba. At present, Alibabas market value is HK $457 million.
Excellent online business performance during the epidemic
During the outbreak, Tencents online game business performed far better than expected. According to the intelligence data of sensor tower store released on June 22, Tencents pubgmobile and peace elite attracted more than 226 million US dollars globally in May, an increase of 41% over the same period last year, ranking the top of the best-selling list of mobile games in the world. In addition, glory of the king and its overseas edition ranked second with revenue of US $204 million, up 42% year on year.
In addition, the already massive social business still maintains a strong growth. Tencents financial report for the first quarter of 2020 shows that as of March 31, 2020, the number of monthly active accounts of wechat and wechat combined exceeded 1.2 billion, reaching 1.202 billion, an increase of 8.2% year-on-year and 3.2% month on month; the number of monthly active accounts of QQ intelligent terminal was 693.5 million, an increase of 7.2% month on month.
Active action in capital market
Tencent first formed a buyers group with Blackhorse capital, and privatized the purchase of the car change at a cash price of $16 per ads, with a total transaction value of $1.1 billion.
Since then, according to the US Securities Regulatory Commission, Tencent has purchased 1.68 million American ADSS of Weilai automobile through its wholly-owned subsidiary Huanghe investment, with a total investment of US $10 million (RMB 70.7 million). After the increase, Tencent held about 159 million shares of common stock in Weilai, accounting for 15.1% of the total, ranking the second largest shareholder.
In addition, the rumors of Tencents stake in iqiyi have also been growing. Tencent holdings is in contact with Baidu to discuss the acquisition of iqiyi shares, according to a source. However, Tencent and iqiyi have yet to respond positively. At present, baidu owns 56.16% of the shares of iqiyi. If Tencent replaces Baidu to become the largest shareholder of iqiyi, it means that the tripartite pattern of aiyouteng in the long video field will be broken.
Source: Financial Association editor in charge: Wang Fengzhi_ NT2541