Is Tencent (0700) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2024
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 7.6% / 30% | 7.3% / 30% | 1.0% / 30% | 2.42% / 5% | ✓ HALAL |
| DJIM | 7.6% / 33% | 7.3% / 33% | 1.0% / 33% | 2.42% / 5% | ✓ HALAL |
| MSCI | 20.1% / 33% | 19.3% / 33% | 2.7% / 33% | 2.42% / 5% | ✓ HALAL |
| S&P | 7.6% / 33% | 7.3% / 33% | 1.0% / 33% | 2.42% / 5% | ✓ HALAL |
| FTSE | 20.1% / 33% | 19.3% / 33% | 2.7% / 50% | 2.42% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 56.2% | |
| Operating Margin | 31.0% | |
| Net Margin | 29.9% | |
| Return on Equity (ROE) | 20.0% | |
| Return on Assets (ROA) | 8.0% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $258.5B |
| Free Cash Flow | $162.5B |
| Total Debt | $358.1B |
| Debt-to-Equity | 32.7 |
| Current Ratio | 1.4 |
| Total Assets | $1.8T |
Price & Trading
| Last Close | HKD 495.60 |
| 50-Day MA | HKD 547.12 |
| 200-Day MA | HKD 584.97 |
| Avg Volume | 26.9M |
| Beta | 0.8 |
|
52-Week Range
HKD 419.00
| |
About Tencent (0700)
Tencent Holdings Limited, an investment holding company, provides value-added services, marketing services, fintech, and business services in Mainland China and internationally. The company's consumers business includes communications and social services, such as instant messaging and social networks; digital content, including online games, videos, live streaming, news, music, and literature; fintech services, which include mobile payment, wealth management, loans, and securities trading; and various tools comprising network security management, browsing, navigation, application management, email, etc. Its enterprise business comprises marketing solutions, which offer digital tools, including user insight, creative management, placement strategy, and digital assets management; and cloud services, such as cloud computing, big data analytics, artificial intelligence, Internet of Things, and security and other technologies for financial services, education, healthcare, retail, industry, transport, energy, and radio and television industries. The company's innovation business includes artificial intelligences, such as robotics and quantum computing; and enterprise and next-generation technologies for food production, energy creation, and water management applications. The company also invests in, produces, and distributes films and television programs; offers copyrights licensing and merchandise sales and other services; provides internet advertisement services; and offers software development, and information technology and system integration services, as well as develops and operates mobile games. The company was formerly known as Tencent (BVI) Limited and changed its name to Tencent Holdings Limited in February 2004. Tencent Holdings Limited was founded in 1998 and is headquartered in Shenzhen, the People's Republic of China.
Purification Calculator
As a halal stock with 2.42% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Tencent (0700) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Tencent is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Tencent's debt ratio?
Tencent's debt ratio is 7.6% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 20.1%.
Does Tencent require dividend purification?
Yes, Tencent has an impermissible income ratio of 2.42%, which means 2.42% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are Tencent's key financial metrics?
Tencent has a market capitalization of $4.5T, trailing P/E ratio of 18.0, and revenue of $660.3B. The company maintains a gross margin of 56.2% and a net margin of 29.9%. Return on equity stands at 20.0%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.