Prosus NV- The Tencent Play
Prosus NV is a Dutch technology investment company founded in 2019 through the spin-off from South African media group Naspers. The company focuses on investing in high-growth technology companies, with a particular focus on e-commerce, online classifieds, fintech and education technology.
Historical development
Prosus was born out of Naspers' strategic goal to bundle its international internet holdings into a stand-alone company. The IPO in 2019 on Euronext in Amsterdam catapulted Prosus to become the largest listed technology company in Europe.
Business model and core competencies
Prosus' business model is based on long-term investments in promising technology companies. The company's core competence lies in identifying, supporting and scaling innovative business models. In addition to capital, Prosus also provides its investments with expertise and access to a global network.
The most important investments include
- Tencent: Leading technology company in China
- Delivery Hero: Global provider of food delivery services
- PayU: Fintech company for payment solutions
- OLX Group: International platform for classified ads
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Future prospects and strategic initiatives
Prosus continues to focus on high-growth markets, particularly in Asia and Latin America. The focus is on high-potential sectors such as e-commerce, fintech and edtech. A key strategic measure is the ongoing share buyback program, which aims to reduce the discount between the stock market value and the intrinsic value of the investments.
Market position and competition
As one of the world's largest technology investment companies, Prosus is in direct competition with other global technology giants such as $9984 (-3.53%) . However, the company has a clear competitive advantage due to its strong presence in emerging markets and its broad geographic focus.
Total Addressable Market (TAM)
Prosus' addressable market (TAM) is huge, as the company is active in various industries and regions. The global e-commerce market is expected to reach USD 16.6 trillion by 2027. The fintech industry is forecast to reach a market volume of 699 billion US dollars by 2030.
Share performance
Since its launch, the Prosus share has recorded a volatile but overall positive performance. In the last 12 months, the TR was 45%, while the TR over three years is 17.1%. .
Despite the growth, the share continues to trade at a significant discount to its net asset value. The current market capitalization of around €90 billion is approximately 20% below the value of the holdings, offering a potentially attractive opportunity for value investors.
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