LOW VALUATION ON TENCENT HOLDINGS AT $48.29 (TCEHY-US)

July 20, 2018 LOW VALUATION ON TENCENT HOLDINGS AT $48.29 (TCEHY-US) Tencent Holdings Limited is a China based technology company that provides value-added services (VAS) and online advertising services. The Company has three main segments. The VAS segment provides online/mobile games, community value-added services and applications across various Internet and mobile platforms. The Online Advertising segment is mainly engaged in display based and performance based advertisements. The Others segment provides payment related services, cloud services and other services. JUSTIFICATION: This company is a global Internet leader that is similar to Amazon and Facebook. We like that the stock is down 21% from the year high of $61.00; that the Shanghai composite index is off 15% year-to-date; the International exposure (diversification); earnings growth of 38% per year; no declining quarters since inception (mid-2009). We believe that this sector will to grow for many more years as advertisers allocate more dollars to online advertising. The consensus target from the 41 analysts that follow the company is $442 CNY which equals $USD65.00. The Purple Chips 12 -18 month target is $USD 60.00.

On purplechips.com, please refer to the chart for TCTZF.