Tencent Trades At 40% Discount

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About: Tencent Holdings Limited (TCEHY)
by: Thomas Bao
This article is exclusive for subscribers.
Thomas Bao
Long Only, Growth, Growth At Reasonable Price
Summary

Tencent has ~40% upside based on sum of parts analysis using US comps and the fair market value of their portfolio investments.

Tencent has a strong track record of leveraging their competitive advantages to build large, new businesses.  For example, leveraging WeChat's 1.2B daily active users (DAU) to bootstrap WeChat Pay.

In addition, Tencent has no risk of COVID as 96% of revenue is China only, and COVID has been contained there.

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