bearish
Tencent Bear Case: The Growth Illusion (Part 1)
1.3k Views10 May 2019 10:22
SUMMARY
In part one of our extensive bear-case analysis on Tencent Holdings (700 HK) , we analyze a number of elements related to Tencent's overall growth dynamics. In part two of our bear-case, written by my colleague Arun George, we specifically dig into the matters related to Tencent's gaming division. Our key points for part one are below.
Preamble – Where is the cash?
The transaction economy – how Tencent earns income off investees irrespective of profitability
Valuation and financials – implausible estimates and 37% downside in our alternative DCF
Bull-case rebuttal
Begin exploring Smartkarma's AI-augmented investing intelligence platform with a complimentary Preview Pass to:
- Unlock research summaries
- Follow top, independent analysts
- Receive personalised alerts
- Access Analytics, Events and more
Join 55,000+ investors, including top global asset managers overseeing $13+ trillion.
Upgrade later to our paid plans for full-access.
or
Already have an account? Sign In Now
Discussions
(Paid Plans Only)
Price Chart(Sign Up to Access)
- Tencent: 1Q19 Bear Necessities16 May 2019
- Tencent (700 HK): Key Game Actually Approved, WeChat Pay Grew Strongly, 27% Upside16 May 2019
- Tencent Bear Case: An Over-Played Hand (Part 2)10 May 2019
- Tencent Bull Case: Buy the Online Community Empire, Not Just a Game Operator10 May 2019
- Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?25 Jun 2018
x