Tencent Becomes World’s 4th Largest Internet Company by Market Cap on Strong Q1 Figure, higher than that of Facebook, only lagging behind Google, Amazon and eBay

May 17, 2013 Leave a comment

Tencent Becomes World’s 4th Largest Internet Company by Market Cap on Strong Q1 Figure

05-16 15:42 Caijing

Market value for the Chinese Internet bellwether topped USD 69.85 billion, higher than that of Facebook, only lagging behind Google, Amazon and eBay

Tencent has risen to become the world’s fourth Internet company after its shares hit a record high Thursday following strong first quarter earnings. Market value for the Chinese Internet bellwether topped USD 69.85 billion, higher than that of Facebook, only lagging behind Google, Amazon and eBay, after its shares surged over 6% to close at HKD 293.4. It now worths twice as much as Baidu, China’s largest search engine, and is nearly in a tie with the country’s e-commerce empjire Alibaba Group, which is widely believed to have USD 70billion in valuation and is expected to go public as early as the next year. Tencent Wednesday reported total revenues of RMB13,547.6 million (USD 2,161) in the first three months, representing a remarkable 40.4% year-on-year growth, and an increase of 11.5% over the previous quarter. Q1 profit was RMB4,071.1 million (USD649.4 million), an increase of 17.3% QoQ or an increase of 37.4% YoY. Net margin increased to 30.1% from 28.6% last quarter. Monthly active user accounts (MAU) of instant messaging were 825.4million, an increase of 9.8% year-on-year, while MAU of Weixin and WeiChat surged 228.4% from a year earlier. The number of users of Weixin, Tencent’s increasingly popular instant text and voicing messaging service, has exceeded 300 million. The company is planning to take the service to a bigger stage in launching WeiChat targeting overseas market. The robust growth in the first three months has enabled the company to fund investments in longer-term opportunities such as WeChat international user acquisition, online video content aggregation, said chairman and CEO Ma Huateng. “We will continue to invest proactively in innovation and technology, and to cultivate our open platform, in order to capture the mobile opportunities ahead and cement our role as a leading Internet platform in China,” Ma said.

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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