$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 🐉💪