2024-04-02 02:21:36 ET
Summary
- Tencent's online advertising business is experiencing strong growth, making it a promising investment in FY 2024.
- The company had a successful FY 2023, with strong growth in its online advertising and Fintech businesses.
- Tencent's free cash flow is surging and the company generated free cash flow margins of 27% in FY 2023.
- Tencent is attractively valued and profitable, with a low price-to-earnings ratio compared to its U.S. counterpart.
Tencent Holdings Limited ( TCEHY ) is a promising growth investment in FY 2024 as the company returned to double digit top line growth in FY 2023 and the online advertising business is seeing an acceleration of growth as well. Although U.S.-based investors may be hesitant to consider Tencent as an investment due to operational focus on China, the gaming and social media company is extremely profitable on a free cash flow basis. Shares are also very attractively valued and have a risk profile that is skewed to the upside!...
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For further details see:
Tencent: Revenue Rebounds With Improving FCF Margins