Tech Giant Tencent's 2017 Profit Surpasses Expectations, Up 105% Says Kangyo Yokohama Securities

TOKYO, March 23, 2018 /CNW/ - 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