Tech Giant Tencent's 2017 Profit Surpasses Expectations, Up 105% Says Kangyo Yokohama Securities
Tech Giant Tencent's 2017 Profit Surpasses Expectations, Up 105% Says Kangyo Yokohama Securities
TOKYO, March 23, 2018 /PRNewswire/ - Kangyo Yokohama Securities has recently commented on Chinese tech titan Tencent, which is best known for its messaging app WeChat, who has just announced net profits of RMB 21.6 billion ($3.4 billion) for its fiscal year in 2017. The figure was up 105 percent year-over-year, its biggest leap in more than a decade, supported by solid revenue growth from mobile games and advertising.
Fujimura Toki, Head of Research at Kangyo Yokohama Securities recently noted that Tencent Holdings also upgraded its guidance for fiscal 2018. Analysts expect earnings for the fiscal year to be up between 30% to 40%.
The Shenzhen-based firm, which is one of world's most valuable technology giants with a market capitalization of roughly $560 billion, runs the China's most popular social-networking platforms, with more 1100 million users, mostly in mainland.
Head of Corporate Trading, Charles Roth at Kangyo Yokohama Securities commented on the results: "Through its popular platforms such as the WeChat messaging, as well as partnerships with major entertainment groups, Tencent managed to achieve strong growth in mobile users, active buyers and transactions. Sales beat expectations, and China's prolific Internet company's shares rose 5 percent in Hong Kong- based premarket trading last night. "
Tencent attributes the strong advance of its financial metrics to acquiring some of the world's most popular games, such as the wildly popular League of Legends and Clash of Clans. Its dominant stake in the social media-based game Honor of Kings, which has nearly 100 million daily users, has also generated a huge boon for the company's earnings in 2017.
Separately, the company indicated it was doubling investments in China to ensure it remains a central presence on its core sectors, including smartphone games, mobile payments and streaming music.
Industry watchers widely expect Tencent to seek listing in China as early as this year and some predict the company could fetch a valuation as high as Western rivals like Facebook and Google.
Tencent has been expanding deeper into other areas such as online payment portals, paid content subscriptions, social and video advertising. All that has helped fuel record revenues and earnings last year.
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SOURCE Kangyo Yokohama Securities
