Naspers opens firmer, extending record on Tencent results
Naspers’s high valuation — it is rising further into record territory — raises questions about the sustainability of its growth, but analysts remain relatively optimistic
Naspers opened firmer on the JSE on Thursday after results from Chinese internet company Tencent, of which Naspers owns about a third, beat analyst expectations. Naspers was up 0.62% at R3,680, bringing gains for the year so far to 82.7%. It rose 1.95% on Wednesday to a record R3,739.83. Tencent was up 2.5% in Hong Kong trade on Thursday, after falling on Wednesday. Tencent’s results were released after the market closed on Wednesday, and all Asian markets ended the day sharply lower. Tencent reported net profit rose nearly 70% in the quarter to end-September from a year earlier, with strong growth at its mobile-gaming and digital-content divisions. Earnings for the quarter rose to more than 18-billion yuan ($2.7bn, or about R38bn) from about 10.6-billion yuan a year earlier. Analysts polled by S&P Global Market Intelligence expected a profit of 15.7-billion yuan, Dow Jones Newswires reported. Tencent has doubled its market value so far this year. Naspers’s high valuation inevitably...
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