TENCENT(HK:00700) Sou Hu Cai Jing·2025-09-17 11:40Core Viewpoint - Tencent's recent investments in consumer sectors, particularly in Amer Sports and Lao Pu Gold, demonstrate that consumer investments can yield significant returns, challenging previous perceptions of the sector's profitability [1][2][15]. Group 1: Investment in Amer Sports - Tencent was part of a consortium that acquired Amer Sports in 2019 for €4.6 billion (approximately ¥36 billion at the time), with Tencent investing $125 million for about 5.6% equity [4][6]. - Following the IPO of Amer Sports in 2024, its market capitalization reached approximately $21 billion (around ¥150 billion), resulting in Tencent's paper profit exceeding ¥5 billion [6][7]. - Other investors, including Fangyuan Capital, have also realized substantial returns, with Fangyuan cashing out approximately ¥9 billion while retaining a 6.2% stake [7][3]. Group 2: Investment in Lao Pu Gold - Tencent invested as a cornerstone investor in Lao Pu Gold's IPO, committing $35 million for about 4% equity, which was a notable move for Tencent in the consumer sector [11][10]. - Lao Pu Gold's stock price surged from an IPO price of HK$40.5 to HK$726.5, marking a 1699% increase, leading to Tencent's paper profit exceeding HK$5 billion [10][11]. - The success of Lao Pu Gold's IPO reflects a broader trend of increasing interest and profitability in consumer investments, as evidenced by other successful IPOs in the sector [13][17]. Group 3: Market Trends and Future Outlook - The consumer investment landscape is experiencing a resurgence, with significant interest from capital markets, particularly in Hong Kong, where consumer companies are gaining traction [17][18]. - The historical perception of consumer investments as less viable is shifting, as evidenced by the success of companies like Lao Pu Gold and the increasing participation of major investors [15][16]. - The consumer sector is viewed as resilient and capable of generating returns even during economic fluctuations, supported by China's large population and consumption potential [18][19].