Naspers’ share price has reached a new record high, closing at nearly R4,703 on Monday. This surge is largely due to the strong performance of Tencent, in which Naspers has a significant stake.
Tencent’s share price increased by HKD31.60, adding HKD290 billion to its market capitalisation. This increase has boosted Naspers’ net asset value (NAV) by around R178 billion.
Analysts attribute the rally in Naspers’ share price to renewed interest in Chinese tech, driven by excitement around China’s DeepSeek AI breakthrough. Nadine Chetty-Khan, investment analyst at Old Mutual Wealth, notes that Naspers offers unparalleled exposure to high-growth online markets.
Naspers’ management has reiterated its commitment to its share buyback programme, demonstrating a focused effort to unlock further value for shareholders. However, risks exist, including geopolitical uncertainties and the potential for a trade war between the US and China.
The Chinese government’s recent meeting with tech leaders, including Tencent’s CEO, is seen as a sign of a more business-friendly approach. This move is expected to stimulate the Chinese economy, which has already shown signs of growth, with industrial output and retail sales increasing in December.