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Tencent Holdings Limited (TCEHY)

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72.13-0.59 (-0.81%)
At close: 4:00PM EDT
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Trade prices are not sourced from all markets
Previous close72.72
Open72.88
Bid0.00 x 0
Ask0.00 x 0
Day's range71.97 - 73.29
52-week range40.04 - 74.24
Volume1,833,219
Avg. volume3,060,542
Market cap683.066B
Beta (5Y monthly)1.00
PE ratio (TTM)53.23
EPS (TTM)1.36
Earnings dateN/A
Forward dividend & yield0.15 (0.21%)
Ex-dividend date14 May 2020
1y target est476.24
  • Didi Seeks 2021 Hong Kong IPO at $60 Billion Value, Reuters Says
    Bloomberg

    Didi Seeks 2021 Hong Kong IPO at $60 Billion Value, Reuters Says

    (Bloomberg) -- Didi Chuxing has begun discussions with investment bankers about an initial public offering in Hong Kong next year that could value the Chinese ride-hailing leader at $60 billion, Reuters reported, citing unidentified people.The startup initiated the talks after it began generating a profit during the second quarter, it reported. Didi’s also considering a new fundraising round ahead of an IPO to boost its valuation, Reuters said.“Didi does not have any definitive IPO plan and we don’t comment on market speculation,” a Didi representative said in a statement to Bloomberg on Tuesday.Didi, backed by SoftBank Group Corp. and Tencent Holdings Ltd., had fought off Uber Technologies Inc. in China and seen its valuation climb to $56 billion. But it has struggled to sustain growth in the face of a regulatory crackdown and then the Covid-19 pandemic.Its shares were said to have traded privately at a discount to its peak valuation of as much as 40%, Bloomberg reported in January. Uber’s own IPO last year proved disappointing, raising questions about prospects for the sector.Didi Fights to Prove It’s More Than Just China’s UberStill, the initial public offering market has heated up this year, particularly in Hong Kong. JD.com Inc. and NetEase Inc. have raised billions in the market, while smaller companies such as Yeahka Ltd. have seen their shares soar with strong demand.Didi, also backed by Alibaba Group Holding Ltd., has been reported to be considering an IPO for years by a variety of media outlets. The Beijing-based company targeted an offering in 2017, Bloomberg News reported the year before.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Alibaba Takes Over China’s Top Hypermart Chain for $3.6 Billion
    Bloomberg

    Alibaba Takes Over China’s Top Hypermart Chain for $3.6 Billion

    (Bloomberg) -- Alibaba Group Holding Ltd. will invest about $3.6 billion to double its stake in Sun Art Retail Group Ltd., taking control of China’s largest chain of hypermarts to try and fend off rivals like JD.com Inc. in e-commerce’s hottest growth arena.Alibaba will raise its direct and indirect stake in the grocery chain to about 72% by acquiring equity from Auchan Retail International SA, then make a general offer to shareholders to buy out the rest of Sun Art. The latter’s Hong Kong-listed stock leapt as much as 30% Monday, its biggest intraday gain since 2011. Alibaba gained as much as 1.8% to touch an intraday record.The deal signals the intention of Asia’s most valuable corporation to accelerate an effort to dominate one of Chinese e-commerce’s largest untapped frontiers. Alibaba Chief Executive Officer Daniel Zhang has made expansion into physical retail and the grocery business in particular a cornerstone of his growth strategy, an effort that paid off during the coronavirus pandemic. Sun Art already operates hundreds of hypermarkets across China under the Auchan and RT-Mart brands, a massive distribution and storage network that can supplement Alibaba’s own efforts in fresh produce.The Chinese e-commerce giant is now grappling with intensifying competition from the likes of JD, food delivery giant Meituan Dianping and startups such as Tencent Holdings Ltd.-backed Missfresh, all chasing a market for groceries and fresh produce that HSBC expects to grow 2.5 times to 690 billion yuan ($103 billion) by 2022 from 2019. Alibaba was among the pioneers in that arena, announcing in 2017 it would spend about $2.9 billion for a 36% stake of Sun Art.The deal “suggests that the tech giant seeks to further expand its one-hour home grocery delivery services such as Taoxianda, leveraging the grocer’s extensive offline hypermarts across China,” Bloomberg Intelligence analyst Kevin Kim said. “This could capture consumers flocking to online platforms, further induced by Covid-19 early this year, yet may hurt foot-traffic to the grocer’s physical stores.”Read more: Alibaba Touts Post-Virus Rebound While Watching ‘Fluid’ U.S.Read more: New Alibaba Chief Explains Why He Wants to Kill His Own BusinessZhang has been directly involved in the expansion into what the company calls its “new retail” strategy, combining e-commerce with physical stores. He helped launch a startup called Freshippo within Alibaba that aimed to combine a grocery store, a restaurant and a delivery app, a business that’s underpinned an overall new retail division that’s grown into a $12 billion operation, contributing a fifth of total revenue in the June quarter.As Alibaba increases its stake to a majority, Sun Art’s financial statements will be consolidated into the larger company’s. Peter Huang, Sun Art’s CEO, will add the title of chairman for the business.What Bloomberg Intelligence SaysAlibaba’s $3.6 billion investment to raise its stake in Sun Art to 72% from the 36% acquired in 2017 signals the company’s intention to strategically ramp up its supermarket retail services. The acquisition should boost its Taoxianda and Tmall Supermarket and help compete against JD.com, Meituan and Pinduoduo, which are also aggressively trying to push into fresh produce e-commerce.\- Vey-Sern Ling and Tiffany Tam, analystsClick here for the research.The online groceries segment has leapt to the forefront during Covid-19 when shoppers shunned restaurants and physical stores, though the industry -- which requires more complex logistical structures such as so-called cold chain storage -- has proven difficult to crack in years past.Alibaba’s initial moves into physical retail were closely followed by WeChat-operator Tencent, which has itself invested in brick-and-mortar chains such as Yonghui Superstores Co. JD now also operates its own thriving groceries business, while Meituan and up-and-comer Pinduoduo Inc. in recent years began investing aggressively in the arena.Sun Art is the industry leader in China’s hypermarkets, operating giant Costco- and Walmart-style stores that sell everything from seafood to wine and furniture under one roof. It held 14% of the market share in 2019, according to global intelligence firm Euromonitor International. Alibaba has also invested in many other brick-and-mortar retailers including Shanghai-listed Sanjiang Shopping Club Co., Shenzhen-listed New Huadu Supercenter Co., and Hong Kong-listed Lianhua Supermarket Holdings Co.Meanwhile, France’s Auchan has become the latest in a slew of foreign retailers to step back from China after struggling in the market. Last year, Carrefour SA sold an 80% stake in its China unit at a discount while German wholesaler Metro AG sold a majority stake in its operations there.Big box offerings are faring better. Costco Wholesale Corp. opened its first outlet in China last year to frenzied crowds and is planning its third store. Walmart Inc. plans to quadruple the number of its members-only warehouse chain Sam’s Club in China to 100 stores over the next eight years, as growth outpaces the company’s separate network of over 400 Walmart stores selling basic groceries.(Updates with Sun Art’s market share in 10th paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Going to the Bank? Millennials Just Won’t
    Bloomberg

    Going to the Bank? Millennials Just Won’t

    (Bloomberg Opinion) -- Last week, struggling with phone and internet banking services, I ventured out to my bank’s branch in the heart of Hong Kong’s financial district. Spread out over several floors of prime real estate, the big institution with its name sprinkled across the city was teeming with people – from two taking temperatures on entry to multiple assistants enquiring what they could help me with even before I reached the customer service counter. I got in the queue.My turn came. The counter agent couldn’t solve my problem. His colleague had no better luck. They then brought out their “digital ambassador.” She took me to a computer and got me to call the customer hotline. When that failed, they tried to get me to fill out a paper form and wait a few days. I lost it. I demanded to see the branch manager.Long story short, I walked out three hours later with the promise of a phone call and a resolution within the following two hours. I still couldn’t use my account, and had just spent hours — on top of the days wasted on the  hotline. I was fuming.But I was also thinking, this just can’t be banking in 2020. Two of the agents were surely Millennials, and sympathized with my travails. There must be a better way. I’ve heard all the fuss around digital banks and fintech companies. Some are already worth a lot. Brazil’s Nubank (Nu Pagamentos SA) is valued at $10 billion, according to CBInsights, and its user base has surged 25% since the beginning of this year to 25 million. Singapore has  shortlisted banks that would only exist virtually for operations in the city-state, while Hong Kong has already awarded eight digital banking licenses.Since my colleague Andy Mukherjee has written about this, I asked him for an update. Turns out, he’d just opened an account with one such new Hong Kong institution, WeLab Bank. What was that experience like?Andy: It took an hour from downloading the app to getting the account operational, and only because I’m such a technology dinosaur. “Raise phone camera to eye level,” and “Blink in three seconds, two, one...” I blinked too soon.Anjani: It’s tough to get that right, to be fair. But why did you plunge into the great unknown of virtual banking?Andy: That’s the question I’ve been asking myself. My main bank is the same as yours, and I don’t know the first thing about the parent WeLab Holdings Ltd., a startup that raised its Series C financing in December.Anjani: Welcome to the trend. WeBank, one of the first private digital banks approved for a license by China, is now one of the largest digital banks there, with 200 million retail users. That’s more customers than traditional lenders that boast big retail bases, like China Merchants Bank Co. and Ping An Bank Co.Andy: But then, WeBank has the backing of Tencent Holdings Ltd., while I had to look up WeLab founder Simon Loong on LinkedIn. While their newness doesn’t bother me, I do want to know if they can make money.Anjani: I get it — loss-making startups and unicorns are the norm, but a bank in the red doesn’t make me feel comfortable, either. Especially, if they’re making huge upfront investment in expensive things like certain secure technologies, more skilled people and all the promised innovation.Andy: The cost of opening accounts for digital banks is very low, and so are operational expenses because they aren’t sitting on brick-and-mortar outlets. They can make money provided they get the deposits to build sizable and safe loan books.Anjani: The safety issue is important. I know they’re regulated by the Hong Kong Monetary Authority just like conventional banks, and subject to stringent capital adequacy norms. The technology they use is vetted for robustness. And they need to submit exit plans, just in case things don’t work out. Andy: That was enough for me.  It was a liberating feeling to trust at least a small sum to a bank other other HSBC Holdings Plc, Standard Chartered Plc and Bank of China (Hong Kong) Ltd. The three have a lock on deposits.Anjani: Maybe that explains why an international financial hub offers such terrible customer service, easily the worst I’ve experienced anywhere. It’s good that HKMA is making experimentation easy by saying that digital banks shouldn’t “impose any minimum account balance requirement or low-balance fees.” For the Millennial crowd, many on first jobs and such, that’s a draw.Andy: As a non-Millennial, I signed up because it was easy. When the app scanned my Hong Kong identification card and auto-filled nearly every field in the application, I couldn’t help but think of how the bulge-bracket bank you and I use made me visit a branch, and took all my paperwork, only to open my account in the wrong name. So much for KYC.Anjani: I can see the advantages of going branchless. Especially when nobody, including the staff, wants to sit in an enclosed space for hours during Covid-19. But if the digital bank saves money on customer acquisition, does it share it? Are you getting a good interest rate?Andy: I missed the inaugural 4.5% offer on Hong Kong dollar time deposits, and settled for a 0.9% annual rate that would rise to 1.1% if 50 people sign up. I was the 30th. As I used the app-generated link to invite 20 friends on WhatsApp, I understood why Sea Ltd., the maker of the popular mobile game, “Call of Duty,” is seeking a digital-only bank license in Singapore. Razer Inc., the firm behind the DeathAdder gaming mouse popular in the ESports community, also wants one.Anjani: Maybe that is the hook — the social element. The Generation Z banking customers, the oldest of whom are now 25, are digital natives, power users of social networks. They’ll be the trendsetters of consumer credit. Many will run their own businesses. Ant Bank (Hong Kong) wants to do digital trade finance for small and medium enterprises.Andy: Perhaps virtual banks will take us back to the future by recreating more cost-effective, better scalable versions of building societies, savings and loans associations and chit funds, hopefully with fewer blowups and scams.So bring on “Call of Duty,” DeathAdder, WeLab and others. Let’s have real some competition for our money.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Anjani Trivedi is a Bloomberg Opinion columnist covering industrial companies in Asia. She previously worked for the Wall Street Journal. Andy Mukherjee is a Bloomberg Opinion columnist covering industrial companies and financial services. He previously was a columnist for Reuters Breakingviews. He has also worked for the Straits Times, ET NOW and Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.