Naspers, whose share price has fallen in tandem with affiliate Tencent, in which it holds a 31.2% stake, offers “significant value at these levels”, Ashburton Investments said on Wednesday.
Browsing: Tencent
More bad news for Tencent: the Chinese Internet giant has lost its spot as one of the world’s 10 biggest companies.
Not only has the Chinese Internet giant lost more market value than any other company worldwide this year, its 38% drop from a closing high in January is now the deepest since Tencent’s 2004 listing in Hong Kong.
While Tencent is cutting the number of business groups to six from seven, the company is actually adding to its structure.
What was the world’s worst technology stock only months ago has become China’s hottest, staging a defiant comeback since it was booted off Hong Kong’s benchmark gauge.
Of the 10 companies worth more than $100-billion that analysts predominantly rate as buy, Tencent – 31.2% owned by South African-listed Naspers – has by some distance had the worst 2018.
Tencent bought back shares for a second day on Monday after its first repurchase in four years spurred speculation the battered Internet behemoth may do more to support the stock.
China’s regulators plan to curtail the number of online games and discourage play-time, part of a broader effort to tackle device addiction and other ills that sent shares reeling from the US to Japan.
Naspers is working to reduce its exposure to Johannesburg’s stock exchange as Africa’s largest company seeks to narrow its valuation gap with flagship asset Tencent Holdings.
Just a few months ago, Tencent reigned as the most valuable company in Asia, but it has since suffered a record stock plunge that has wiped more than $140-billion off its market value.