Tencent announced its 4Q result this Wednesday, after market closed. Company president, Martin Liu, said earnings growth would be “certain” to slow. The news trigger a sale off from investors. Its share price dropped over 10% the next day in Hong Kong, the largest fall in almost two years.
Tencent’s fall also affect its major shareholder, South Africa’s Naspers. which owns a 30 percent stake. Naspers’ share price dropped 4.4% on Thursday and another 3.12% on Friday, becoming the biggest percentage loser among Johannesburg’s Top-40 index of blue chips .
But is Tencent’s result really that bad ?? The company posted a fourth-quarter profit increase of 46 per cent, which is generally inline with investors’ expectation. (Its net profit is Rmb 2.2 billion, compared with Rmb 2.24 billion average estimate of nine analysts compiled by Bloomberg.) What really worried investor is its president’s remark of “slower growth”.
Start your free trial now.
Get instant access to all our premium content, archives, newsletters, and online community.
Monthly Membership
Yearly Membership
What you get
Full access to all premium content and our full archives
Members'-only newsletters
Preferential access and discounts to all TechNode events
Direct access to the TechNode newsroom
Start your free trial now.
Get instant access to all our premium content, archives, newsletters, and online community.