GJTENCT@EC2703C

$TENCENT(00700.HK)

Buy and hold Tencent when everyone are fearful 😊

🔷 Context

I bought Tencent yesterday and it is currently trading at HKD441.20, up +0.50%, comfortably above my entry cost of HKD439.00 ✅

🟢 Why am I buying Tencent:

Valuation is at 14.8x TTM P/E and 15.3x forward P/E.

Tencent sits near the very bottom of its historical valuation range and roughly in line with quality-adjusted China internet peers.

This discounted multiple already prices in significant market skepticism around AI capex returns and the continuity of its buyback program. This means that there are a lot of pessimism already baked in.

Financial strength: It still boasts one of the strongest balance sheets in large-cap tech,near-zero net debt, roughly HKD530 billion in cash and a massive, high-value investment portfolio.

But the picture shifted in H1 2026: capex jumped ~80%, quarterly free cash flow turned negative and net cash levels halved. The foundation remains rock solid today.

🔷 My trade:

I took the opportunity to add 100 shares when the price looked extremely attractive. I buy when others are fearful. I know i am investing in one of the world’s largest companies.

A company that has a fully integrated closed ecosystem built around WeChat and QQ, spanning games, WeChat Pay, digital content, advertising, cloud services and a huge global investment portfolio, with powerful synergies running through every part of its business. 🧩

🔷 Key takeaways:

Long term conviction stays strong.

Let’s go Tencent dragon 🐉💪

$Tencent 5xLongSG270930(PSJW.SG)$Tencent

Context: Tencent has been a painful one for me. My 5x Long position went quite deep into red before, and I DCA several times to bring my average down. It has recovered from the recent low, but I’m still at -13.33% with market price 0.039 vs my average 0.045.

My trade: I’m still holding because I think Tencent has room to recover, but with 5x leverage the movement is really unforgiving. Even when the underlying rebounds, recovering the DLC loss is not always as fast as I expected.

Takeaway: DCA on a leveraged product needs much more patience and risk control. Next time I would probably enter smaller first instead of averaging down too aggressively. @Captain's Treasure

$XL2CSOPHYNIX(07709.HK)Hynix's average daily buyback amount accounted for 10% of its average daily turnover, a scale only seen in Tencent's history, which was used to hedge against the dumping by its major South African shareholder at that time.

$Tencent 5xLongSG270930(PSJW.SG)Tencent still testing my patience 😅 Definitely not the easiest trade, but also a good reminder of how aggressive 5x DLC can be when the underlying keeps moving against you.

I’ve managed to bring my average down to 0.045, while market is now around 0.034. At this stage I’m not going to blindly chase every dip. With 5x leverage, timing matters a lot more because daily reset and compounding can work against the position if weakness continues.

That said, I’m still not giving up on the underlying thesis. Tencent remains a strong business across gaming, advertising, fintech and cloud, and I still see AI monetisation as another potential growth driver. The question for this trade is more about when sentiment turns, not just whether Tencent is a good company.

For now I’ll be patient and watch the underlying Tencent price closely before deciding whether to add again. This DLC has taught me one thing for sure: conviction is important, but with leverage, position sizing and patience are even more important. 😅

Still holding. Let’s see how this week goes. @Captain's Treasure

The quarterly earnings season has been in full swing over the past week. Despite similar performance, it's a world apart from July.

This week, the focus is on Thursday's FOMC meeting. We've noticed the 10-year US Treasury yield oscillating at high levels and could break out upward at any moment.

This is a risk factor.

$JD-SW(09618.HK)$TENCENT(00700.HK)

Both Chinese tech giants have reported their Q2 2026 results this week and both stocks ended the lower.

💎 JD.com:

1️⃣ Revenue fell 2.9% to RMB 346.4 billion

2️⃣ Non‑GAAP net profit rose 20% and free cash flow hit a strong RMB 31.8 billion.

3️⃣ The stock still dropped 13.6% over the week.

💎 Tencent:

1️⃣Revenue grew 11% to RMB 204.8 billion

2️⃣ Non‑GAAP net profit was up 9%, but heavy AI investment pushed free cash flow to –RMB 13.8 billion.

3️⃣Its share price fell 8.1% for the week.

One focused on restoring profitability and the other on powering AI‑driven growth.

Which do you think delivered stronger results overall, both financially and for its stock performance? 👇

Read

Think

Research

Make sense

Done👇

Tensions in the Strait of Hormuz continue to escalate, with shipping traffic at a three-month low and conflicting signals from both sides regarding an end to the conflict; oil prices still fell 2.1% to $87.07.

Gold saw slight gains, while the US dollar remained weak.

The situation is not optimistic; hold some cash and keep safe-haven precious metals on hand for emergencies.

The inflation numbers are out and both CPI and PPI are looking favourable. The markets like them and are trending higher as a result.

The overall market is taking the inflation numbers in its stride and liking it. Price action leans bullish and the number of bears still being around and vocal gives it an even more bullish nuance.

With CPI and PPI out of the way, it is back to earnings for the remaining companies. Interesting to see if there will be a pullback from all time highs or we go higher from here.

I still like Yangzijiang Shipbuilding (SGX: BS6) fundamentally, but at today’s ~S$4.66 I would not chase it with a large purchase. The price has moved very quickly after the excellent 1H26 results. As of 10:51am today, it was around S$4.66, already close to its recent high.