Tencent Bear Case: The Growth Illusion (Part 1)
In part one of our extensive bear-case analysis on Tencent Holdings (700 HK) , we analyze a number of elements related to Tencent's overall growth dynamics. In part two of our bear-case, written by my colleague Arun George, we specifically dig into the matters related to Tencent's gaming division. Our key points for part one are below.
Preamble – Where is the cash?
The transaction economy – how Tencent earns income off investees irrespective of profitability
Valuation and financials – implausible estimates and 37% downside in our alternative DCF
Bull-case rebuttal
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