The game is slow to recover, the advertising is polarized, and financial services are not strong enough. Tencent needs more time.
Editor’s note: This article is from WeChat public account “Fueling Finance” (ID :rancaijing), Author | Zhao Lei Editor | Zhou Yifan.
Beijing time on November 13, Tencent Holdings (00700.HK) released the third quarter (Q3) financial report as of September 30, 2019, this financial report also coincides with the first anniversary of Tencent’s organizational structure strategy upgrade, Like a test paper submitted by Tencent, the outside world is very concerned.
But Tencent’s results are not very satisfactory.
The financial report shows that Tencent’s revenue in the third quarter was 97.236 billion yuan, up 21% from 80.595 billion in the same period last year, less than the market expectation of 99.044 billion yuan; net profit was 20.382 billion yuan, down 13% year-on-year. 16%, also a far cry from the market expectations of 23.331 billion yuan.
Cartography / Burning Finance
As of November 13, Hong Kong stocks closed, Tencent closed at HK$327.4, down 0.85%, with a market capitalization of approximately HK$3.13 trillion. On November 14, the opening price of Hong Kong stocks was HK$320 and continued to fall. Tencent’s share price has been fluctuating since this year. At the peak, it has approached 400 Hong Kong dollars and has now fallen back to the beginning of the year.
Before, investment banks are generally optimistic about Tencent’s third-quarter earnings report, including more than 20 investment banks including Guojin Securities, which adjusted Tencent’s rating to “buy”, and believe that Tencent has found a new foothold in strategy. There is still no recession, and foreign investment is bearing fruit. Now is the best time to buy Tencent since 2016.
However, the third quarter revenue was not as good as expected, indicating that