As of December 31, 2024, Tencent repurchased 307 million shares throughout the year, with a total amount reaching HKD 112 billion, conducting 129 repurchases and averaging HKD 868 million per day. This has reduced Tencent's total share capital to 9.22 billion shares, the lowest level in ten years. According to Wind data, the total amount of stock buybacks in the Hong Kong market for 2024 reached HKD 265.7 billion, a year-on-year increase of 109%, with Tencent's buyback amount accounting for 42%, making it the leader in shareholder returns in the Hong Kong market. The stock price rose 43.7% in 2024, closing at HKD 409.4 on January 6, with a cumulative increase of 24% over the past five years.

(Source: Google Finance)

Over the past year, Tencent has shown strong growth driven by new businesses such as Video Accounts, Mini Programs, AI large models, and SaaS, while some older games have been revitalized. The latest quarterly report shows that Tencent achieved revenue of HKD 167.193 billion, with gross profit and operating profit (non-IFRS) of HKD 88.828 billion and HKD 61.274 billion, respectively, representing year-on-year growth of 16% and 19%. In terms of free cash flow, the free cash flow for the first three quarters of last year was HKD 51.9 billion, HKD 40.4 billion, and HKD 58.5 billion, respectively, with cash and cash equivalents reaching HKD 145.468 billion as of September 30, 2024.

As of December 31, 2024, Tencent's total share capital was 9.22 billion shares, a decrease of 260 million shares from the beginning of 2024 and approximately 380 million shares from the end of 2021. Additionally, Tencent has increased its dividend payouts in recent years, distributing HKD 1.6 per share in both 2020 and 2021, raising it to HKD 2.4 in 2022, and further increasing it to HKD 3.4 in 2023. The mid-2024 report indicated a final dividend of HKD 3.40 per share (approximately HKD 31.7 billion) for the year ending December 31, 2023, reflecting a year-on-year growth of about 39%.

Wind data shows that as of December 31, 2024, 281 Hong Kong stocks have implemented buybacks, with a cumulative buyback amount of HKD 265.7 billion, setting a new annual high. Tencent contributed over 40% of the total buyback amount in the Hong Kong market with its HKD 112 billion buyback, while other internet technology companies like Meituan and Kuaishou also emerged as key players in buybacks.

What is Dollar-Cost Averaging in Stocks?

Dollar-cost averaging, also known as monthly stock investment, refers to an investment strategy where a fixed amount is used to purchase specific stocks at regular intervals. This approach allows investors to buy shares without needing to purchase a whole unit each time, instead buying a proportionate number of shares based on their set monthly investment amount.

For example, consider Mr. Chen, who wishes to invest in the Tencent in stages. Using the dollar-cost averaging feature, Mr. Chen invests HKD 1,000 each month, which uSMART uses to purchase shares at market price and deposits them into Mr. Chen's account. This way, Mr. Chen effectively buys around 2 shares of Tencent each month, achieving a low-threshold stock investment.

Advantages of Monthly Investment via uSMART

Choosing the right investment platform is crucial for dollar-cost averaging in stocks. Investing through the uSMART platform offers several significant advantages:

1. Commission-Free Trading

uSMART provides commission-free trading services, meaning investors do not have to pay commission fees for each stock transaction. This is particularly important for investors making regular investments, as accumulated commissions can significantly erode long-term returns. By investing through uSMART, you can allocate more funds to actual investments.

2. No Platform Fees

Besides commission-free trades, uSMART does not charge platform usage fees. This allows investors to enjoy a lower cost structure in long-term investments, further enhancing investment returns. This is especially beneficial for frequent small investments, as the absence of platform fees effectively reduces overall investment costs.

3. No Custody Fees

uSMART also offers the advantage of no custody fees, meaning you do not need to worry about management fees for account funds. This exemption provides investors with greater flexibility to manage liquidity and investment strategies.

4. Convenient Investment Experience

The uSMART platform features a user-friendly interface, allowing investors to easily set up a monthly investment plan and automate their investment process. The platform supports various payment methods, enabling investors to adjust their investment amounts flexibly based on their financial situation and investment goals.

5. Support for Fractional Shares

uSMART allows investors to make fractional share investments, meaning you can invest according to your set monthly amount even if you do not have enough funds to buy a whole share, further lowering the investment threshold and enabling flexible allocation.

How to Purchase Monthly Stocks on uSMART

Step 1: Log into the uSMART HK app and click "Trading" at the bottom right of the page.

Step 2: Click on "Dollar-Cost Averaging" in the second column of the page and select "All Dollar-Cost Averaging Stocks."

Step 3: Choose your desired dollar-cost averaging stock, select the investment amount, deduction method, and deduction date, then create your investment plan.

Once confirmed, the investment plan will take effect in real time.

(SOURCE: uSMART HK)