How to buy Tencent (0700) shares in Australia
Learn how to easily invest in Tencent shares.
Tencent Holdings Limited (0700), also known as Tencent, is a Chinese multinational technology conglomerate with various investments in major Chinese technology brands. As one of the world's largest companies, Tencent offers popular services like WeChat and Tencent Music. It is also the owner of various global gaming brands such as Riot Games (developer of the titles Valorant and League of Legends) and Supercell (developer of the popular titles Brawl Stars and Clash of Clans).
What's in this guide?
- Tencent key stats
- Compare share trading platforms
- Is Tencent stock a buy or sell?
- Tencent performance over time
- Is Tencent suitable for ethical investing?
- Are Tencent shares over-valued?
- Tencent's financials
- How volatile are Tencent shares?
- Does Tencent pay a dividend?
- Have Tencent shares ever split?
- Other common questions
How to buy shares in Tencent
- Compare share trading platforms. To buy shares in a company that's listed outside of Australia, you'll need to find a trading platform that offers access to global stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
- Search for Tencent. Find the share by name or ticker symbol: 0700. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Tencent reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. At last close price of HKDHK$HK$319, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Tencent, depending on your broker.
- Check in on your investment. Congratulations, you own a part of Tencent. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
Tencent stock price (HK:0700)Use our graph to track the performance of 0700 stocks over time.
Tencent shares at a glance
|52-week range||HK$262.2113 - HK$413.6576|
|50-day moving average||HK$305.868|
|200-day moving average||HK$335.299|
|Dividend yield||HK$2.123 (0.75%)|
|Earnings per share (TTM)||HK$14.97|
Compare trading platforms to buy Tencent shares
Is it a good time to buy Tencent stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. However, this is not a recommendation. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Tencent price performance over time
|1 week (2023-11-24)||-0.68%|
|1 month (2023-11-02)||10.53%|
|3 months (2023-08-31)||-1.85%|
|6 months (2023-06-02)||-4.55%|
|1 year (2022-12-02)||7.77%|
|2 years (2021-12-02)||-32.64%|
|3 years (2020-12-02)||-44.43%|
|5 years (2018-11-30)||2.24%|
Is Tencent under- or over-valued?
Valuing Tencent stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Tencent's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Tencent's P/E ratio
Tencent's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 15x. In other words, Tencent shares trade at around 15x recent earnings.
Tencent's PEG ratio
Tencent's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.0497. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Tencent's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Tencent's EBITDA (earnings before interest, taxes, depreciation and amortisation) is HKDHK$150.2 billion (£15.1 billion).
The EBITDA is a measure of a Tencent's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||HKDHK$598.8 billion|
|Operating margin TTM||28.65%|
|Gross profit TTM||HKDHK$245.9 billion|
|Return on assets TTM||5.37%|
|Return on equity TTM||23.9%|
|Market capitalisation||HKDHK$3.1 trillion|
TTM: trailing 12 months
Tencent's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Tencent.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Tencent's total ESG risk score
Total ESG risk: 28.4
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Tencent's overall score of 28.4 (as at 01/01/2019) is nothing to write home about – landing it in it in the 45th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Tencent is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Tencent's environmental score
Environmental score: 7.6/100
Tencent's environmental score of 7.6 puts it squarely in the 8th percentile of companies rated in the same sector. This could suggest that Tencent is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Tencent's social score
Social score: 17.67/100
Tencent's social score of 17.67 puts it squarely in the 8th percentile of companies rated in the same sector. This could suggest that Tencent is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Tencent's governance score
Governance score: 15.63/100
Tencent's governance score puts it squarely in the 8th percentile of companies rated in the same sector. That could suggest that Tencent is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Tencent's controversy score
Controversy score: 2/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Tencent scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Tencent has, for the most part, managed to keep its nose clean.
Environmental, social, and governance (ESG) summary
|Total ESG score||28.4|
|Total ESG percentile||44.78|
|Environmental score percentile||8|
|Social score percentile||8|
|Governance score percentile||8|
|Level of controversy||2|
Tencent share dividends
Dividend payout ratio: 32.06% of net profits
Recently Tencent has paid out, on average, around 32.06% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.49% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Tencent shareholders could enjoy a 1.49% return on their shares, in the form of dividend payments. In Tencent's case, that would currently equate to about HK$2.123 per share.
While Tencent's payout ratio might seem fairly standard, it's worth remembering that Tencent may be investing much of the rest of its net profits in future growth.
The latest dividend was paid out to all shareholders who bought their shares by 19 May 2023 (the "ex-dividend date").
Have Tencent's shares ever split?
Tencent's shares were split on a 5:1 basis on 15 May 2014. So if you had owned 1 share the day before the split, the next day you would own 5 shares. This wouldn't directly have changed the overall worth of your Tencent shares – just the quantity. However, indirectly, the new 80% lower share price could have impacted the market appetite for Tencent shares which in turn could have impacted Tencent's share price.
Tencent share price volatility
Over the last 12 months, Tencent's shares have ranged in value from as little as HKDHK$262.2113 up to HKDHK$413.6576. A popular way to gauge a stock's volatility is its "beta".
Beta measures a share's volatility in relation to the market. The market (HK average) beta is 1, while Tencent's is 0.632. This would suggest that Tencent's shares are less volatile than average (for this exchange).
Tencent Holdings Limited, an investment holding company, offers value-added services (VAS), online advertising, fintech, and business services in the People's Republic of China and internationally. It operates through VAS, Online Advertising, FinTech and Business Services, and Others segments. The company's consumers business provides communication and services, such as instant messaging and social network; digital content including online games, videos, live streaming, news, music, and literature; fintech services, which includes mobile payment, wealth management, loans, and securities trading; and various tools, such as network security management, browser, navigation, application management, email, etc. Its enterprise business comprises marketing solutions, which offers digital tools including user insight, creative management, placement strategy, digital assets management, etc.; and cloud services, such as cloud computing, big data analytics, artificial intelligence, Internet of Things, security and other technologies for financial services, education, healthcare, retail, industry, transport, energy, and radio & television application. In addition, the company operates innovation business, which includes artificial intelligences; and discover and develops enterprise and next-generation technologies for food production, energy, and water management application. Tencent Holdings Limited was formerly known as Tencent (BVI) Limited and changed its name to Tencent Holding Limited in February 2004. The company was founded in 1998 and is headquartered in Shenzhen, the People's Republic of China.
Tencent in the news
Tencent Holding Ltd. (TCEHY) Upgraded to Strong Buy: What Does It Mean for the Stock?
Tencent stock sees boost, ByteDance scales back gaming unit
Xi to Make His First Visit to Shanghai Since 2021, SCMP says
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