- Tencent‘s 4Q net income was 27.03 billion yuan, missing the estimated 33.29 billion yuan.
- The operating profit was also below estimates at 41.40 billion yuan, compared to the estimated 46.72 billion yuan.
- However, the adjusted net income surpassed estimates, reaching 42.68 billion yuan against an estimated 41.97 billion yuan.
- Revenue was slightly under the estimate at 155.20 billion yuan, with the estimate being 157.42 billion yuan.
- Net other gains also fell short of the estimate, with Tencent reporting 1.98 billion yuan against an estimated 2.14 billion yuan.
- Tencent‘s Weixin and WeChat monthly active users (MAUs) matched the estimate of 1.34 billion.
- QQ smart device MAUs were lower than expected at 554 million, compared to an estimated 582.52 million.
- Fee-based VAS subscriptions exceeded estimates with 248 million compared to an estimated 245.04 million.
- The final dividend per share for 2023 was HK$3.40.
- There were 69 buys, 2 holds, and 0 sells on Tencent‘s stock.
Tencent on Smartkarma
Tencent, one of the top companies in China, is getting a lot of attention from analysts on Smartkarma, an independent investment research network. According to the reports from top analysts like Charlotte van Tiddens, CFA and Ming Lu, the focus for Tencent‘s upcoming Q4 FY23 results will likely be on gross margins and cost cutting. The market is expecting a 1.8% QoQ revenue growth and strong revenue growth for the advertising segment. However, there is also concern about a decline in gaming revenue. On the other hand, analysts like Travis Lundy and Brian Freitas are bullish on Tencent, with Lundy reporting strong net buying on Tencent and ETFs and Freitas noting that Tencent is the largest buy in the WisdomTree Indexes Special Rebalance.
The reports also mention that Tencent sold a weak business to China Literature in December 2024, which could potentially impact their revenue growth. However, overall, analysts are predicting stable growth and margin improvement for Tencent in the upcoming quarter and the following years. It is worth noting that Tencent was finally a net buy for Southbound Connect, a platform for mainland Chinese investors to buy Hong Kong-listed stocks. This could be a positive sign for the company’s performance in the future. With the upcoming release of their Q4 FY23 results, all eyes will be on Tencent and its performance in the market.
A look at Tencent Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Tencent Holdings Limited, a leading investment holding company, has been receiving positive long-term outlook scores from Smartkarma’s Smart Scores. These scores, ranging from 1 to 5, indicate the company’s overall performance in various factors. Tencent has scored a 2 for value, 3 for dividend, 4 for growth, 3 for resilience, and 4 for momentum. This indicates that the company is performing well in terms of growth and momentum, and is also resilient in the face of challenges.
As one of the world’s top providers of internet and mobile value-added services, online advertising, and e-commerce transactions, Tencent Holdings has a wide reach and global presence. Its services are utilized by users worldwide, making it a strong and stable player in the industry. With its strong scores in growth and momentum, Tencent is positioned for long-term success and is a company to watch out for in the future.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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