19 July 2019

Tencent profit climbs 22% but still misses mark

It was all quiet on the Hong Kong benchmark Hang Seng Index (HSI) front Wednesday as the market focused on the results of major companies.

The HSI shed 14 points, or 0.07 percent, to 21,568. The Hang Seng China Enterprises Index, the main gauge for H shares, meanwhile added 0.2 percent to finish at 9,360. The Shanghai Composite Index lost 0.17 percent to close at 2,021 points.

Tencent (00700.HK) waited until after the market’s close to reveal that its revenue grew 38 percent in 2013 from a year earlier. Its net profit climbed 22 percent to 15.5 billion yuan (US$2.5 billion) but failed to meet expectations. The counter closed 1.8 percent lower.

Galaxy Entertainment’s (00027.HK) net profit grew 36.2 percent to hit a peak of HK$10.05 billion (US$1.35 billion) last year, with the group issuing its first dividends. But the market was not satisfied with the result or the dividend, and the counter gave up 2.83 percent during the session.

Software players have been riding higher as their results continue to beat estimates. Kingdee International Software (00268.HK) rose another 9.6 percent after shooting up more than 12 percent in the previous session, thanks to a profit turnaround last year. Kingsoft (03888.HK) surged 8.6 percent after announcing its revenue was up 54 percent last year.

Geely Automobile Holdings (00175.HK) jumped 15.3 percent amid news that its profit grew 30.5 percent in 2013. Other carmakers were cheered by the resut, with Dongfeng Motor Group (00489.HK) closing 2.5 percent higher and Guangzhou Automobile Group (02238.HK) gaining 3 percent.

There was also market speculation that personal care chain store Watsons might unlock value by going public in Hong Kong, London and Singapore simultaneously. Watsons parent Hutchison Whampoa (00013.HK) closed 1.96 percent higher for the day.

– Contact the writer at [email protected]



EJI Weekly Newsletter

Please click here to unsubscribe