Tencent Holdings Ltd0700
▲ PositiveCapitalrelevance
Tencent spent HK$300 million on share buyback, which is value-accretive as stock trades below GF Value.
Impact on stocks 1
Digital Finance & Tokenization
Tencent Holdings LtdTencent Holdings spent HK$300.4 million repurchasing 672,000 shares on Wednesday, as the stock rose 0.8% to $56.77, with an average price of HK$447.02 per share. The repurchased shares will be cancelled, and the company has now bought back about 41.46 million shares under its current mandate, representing 0.455% of the original share count. This buyback activity follows strong second-quarter results, where revenue increased 11% to RMB204.8 billion and fintech and business-services sales rose 9% to RMB60.3 billion. At $56.77, Tencent trades 16.72% below its GF Value estimate of $68.17, suggesting the buybacks are value-accretive. The challenge ahead is whether buybacks can consistently offset employee stock awards and the cash needs of Tencent's AI investments.
Tencent Holdings LtdTencent spent HK$300 million on share buyback, which is value-accretive as stock trades below GF Value.