Tencent needs no catalyst because its EPS keeps compounding steadily, and a long stretch of low prices is ultimately a gift if it buys back a ton of stock. Owning it through Prosus adds a second layer of buybacks at a discount. x.com 

Tencent offers strong downside protection plus several sources of upside. Net of cash and investee stakes it trades at about a 9.5% free-cash-flow yield, and $21.6B net cash, $80.6B of listed stakes and about $50B of unlisted ones cover roughly 20% of its $506B market cap with no long-term debt. It dominates Chinese social media, gaming and music. Upside comes from conservative AI gains in ads and cloud, buybacks management says target an undervalued stock, and convergence to US peer multiples. … Show more

Tencent owns one of the best closed loops from intent to identity to payment to fulfillment, yet trades as if AI agents will bypass it. Weixin combines 1.44 billion users with chat, payments, Mini Programs and merchant reach, so its Xiaowei agent can hand work to services that already know the user, a distribution and return advantage. About $75 billion of cash and $128 billion of investments against a $491 billion market cap leave the operating business near 7x roughly $40 billion of earnings. … Show more

Tencent is starting to look a bit too cheap at 13 times forward earnings. x.com 

Alibaba should be taken seriously within the next three months, trading at just 10 times 2028 earnings. x.com  x.com 

Tencent could be the one true winner in Chinese AI because of its monopoly position, while everything else in China gets commoditized. x.com 

Chinese equities, including Alibaba and KWEB, look set for a rapid reversal: after months of profit-taking and decade lows in many names while US markets reached highs, this morning's inflow is a positive sign. There is still value in many of these names. x.com 

China internet stocks may be worth starting to nibble at after weathering an awful earnings season. x.com 

Chinese internet stocks remain a poor investment because the government treats successful companies as Communist Party vehicles when convenient. The KWEB fund is flat after 13 years while inflation rose 43%, and nearly every company hyped as the next Google disappointed; Beijing forced Jack Ma out and takes from firms that earn too much. China's population is shrinking fast and per-capita spending power is lagging, so capital is better deployed in the US, then Latin America and Southeast Asia. … Show more

Baidu trades below book value, one of the best values seen in many years, with about $40 billion of equity against a $39 billion market cap. Legacy search is declining, but the cloud, AI and robotaxi businesses are very strong, and book value is a better value metric than an easily manipulated P/E. x.com  x.com