reports
- Jin Yoon
TME 2Q25 Results: Core Music Segment Remains Resilient
What’s new: TME’s reported 2Q25 results that were above consensus and our expectations. OMS could remain resilient as monthly ARPPU could see further upside from stable competition and increasing contribution from SVIP members. GM could be adversely impacted in 3Q partly due to higher rev mix from lower margin offline concerts related revs. We up our PT from USD17 to USD28 on resiliency of the online music segment. Our updated PT of USD28 implies 28.5x FY26E P/E. We maintain our BUY rating. Ana...
- Julia Pan Mengyao
- Ming San Soong
Tencent Music Entertainment Group (1698 HK): 2Q25: Solid earnings beat...
TME’s 2Q25 delivered strong 2Q25 results with both the top-line and bottom line beating our expectations. Revenue grew 17.9% yoy to Rmb8.4b, 6% above the street’s estimates. Non-GAAP operating profit grew 31.4% yoy to Rmb3.2b, with operating margins edging up 4ppt yoy to 38%. Non-GAAP net profit rose 33% yoy to Rmb2.6b, beating consensus expectations by 16%, with net margins expanding 4ppt yoy to 31%. Maintain BUY with a higher target price of HK$105.00 (US$27.00).
- Ejann Hiew
- Greater China Research Team
- Julia Pan Mengyao
- Ming San Soong
- Shirley Wang Xueyi
- Stella Guo Yuting
Greater China Daily: Wednesday, August 13, 2025
KEY HIGHLIGHTS Results Galaxy Entertainment Group (27 HK/BUY/HK$40.18/Target: HK$45.00) Galaxy’s 2Q25 normalised EBITDA rose 7% qoq. In 2Q25, the lower hold rate led to a modest mass market share gain. However, the hold rate has been normalising qtd. With Capella’s opening, management expects reinvestments efficiency to be optimised further amid intense market competition. The company declared an interim dividend of HK$0.70, implying a payout ratio of 58%, and management expects the payout rat...
- Greater China Research Team
Greater China Strategy Alpha Picks: August Conviction Calls
In July, the HSI and MSCI China index extended their growths, rising 2.9% mom and 4.5% mom respectively to reach their peak on 24 July before pulling pack in the latest week, as investors tend to take profit after the Politburo announcement. With another 90-day tariff delay from the US, we maintain a positive outlook for leading domestic stocks in healthcare and IT. New additions to our BUY list are JBM Healthcare and Lenovo. We take profit on CATL, Han’s Laser, KE Holdings and Longfor.
01177 SINO BIOPHARMACEUTICAL LIMITED
002472 ZHEJIANG SHUANGHUAN DRIVELINE (A)
00700 TENCENT HOLDINGS LTD.
01810 XIAOMI CORP. CLASS B
TME TENCENT MUSIC ENTERTAINMENT GROUP SPONSORED ADR CLASS A
01801 INNOVENT BIOLOGICS INC.
09988 ALIBABA GROUP HOLDING LTD.
02618 JD LOGISTICS INC
02161 JBM (HEALTHCARE) LTD
1698 HK TENCENT MUSIC ENTERTAINMENT GROUP
- Greater China Research Team
Greater China Strategy: Alpha Picks -- July Conviction Calls
June’s HSI and MSCI China Index rose 3.4% mom and 4.0% mom respectively, despite the pullback due to the Middle East tensions. July may see increased volatility as the US looks to bring the tariff negotiations to a close. At this juncture, we continue to favour domestic policy beneficiaries and sector leaders. New additions to our BUY list are CATL, KE Holdings, Longfor, Midea Group, Tencent and Tencent Music Entertainment. We take profit on Prudential.
A0M4P7 HAN'S LASER TECHNOLOGY INDUSTRY GROUP CO. LTD. CLASS A
00291 CHINA RESOURCES BEER (HOLDINGS) CO. LTD.
RLF LONGFOR GROUP HOLDINGS LTD.
01177 SINO BIOPHARMACEUTICAL LIMITED
002472 ZHEJIANG SHUANGHUAN DRIVELINE (A)
000333 MIDEA GROUP CO. LTD. CLASS A
00700 TENCENT HOLDINGS LTD.
01810 XIAOMI CORP. CLASS B
TME TENCENT MUSIC ENTERTAINMENT GROUP SPONSORED ADR CLASS A
01801 INNOVENT BIOLOGICS INC.
300750 CONTEMPORARY AMPEREX TECHNOLOGY CO. LTD. CLASS A
BEKE KE HOLDINGS INC. SPONSORED ADR CLASS A
09988 ALIBABA GROUP HOLDING LTD.
02618 JD LOGISTICS INC
02423 KE HOLDINGS INC.
1698 HK TENCENT MUSIC ENTERTAINMENT GROUP
3750 CONTEMPORARY AMPEREX TECHNOLOGY (3750 HK)
- Jin Yoon
TME: 1Q25 Results: Further Upside in Online Music ARPU
What’s new: TME’s reported 1Q25 results that were above consensus and our expectations. OMS could remain resilient driven by both subscription and non-subscription segments, while margins could continue to inch up amid continued cost controls and better efficiency. We maintain our PT at USD17. Analysts: Jin Yoon
- Julia Pan Mengyao
- Ming San Soong
Tencent Music Entertainment Group Page 8 (1698 HK): 1Q25: Solid earnin...
TME’s 1Q25 earnings were better than expectations. Revenue grew 8.7% yoy to Rmb7.4b, largely in line with our and the street’s estimates. Gross margin expanded 3ppt yoy to 44%, in line with our expectation. Non-GAAP operating profit grew 18% yoy to Rmb2.7b, with operating margin edging up 3ppt yoy to 37%. Non-GAAP net profit rose 23% yoy to Rmb2.2b, exceeding consensus expectation by 12%, with net margin expanding 3ppt yoy to 30%. Maintain BUY with a higher target price of HK$68.00 (US$15.50).
- Greater China Research Team
- Julia Pan Mengyao
- Ming San Soong
- Roy Chen Chengzhi
Greater China Daily: Tuesday, May 14, 2025
KEY HIGHLIGHTS Results JD.com (9618 HK/BUY/HK$137.00/Target: HK$185.00) JD’s 1Q25 results came in above expectations. Revenue increased 16% yoy to Rmb301b, 3-4% above our and consensus estimates, in line with its previously guided double-digit growth. Non-GAAP operating profit rose 31% yoy to Rmb11.7b, translating to a non-GAAP operating profit margin of 3.9%. Non-GAAP net profit grew 43% yoy to Rmb12.8b. Adjusted net margin jumped 1ppt yoy to 4%. Maintain BUY with a lower target price of HK$1...
- Julia Pan Mengyao
- Ming San Soong
Tencent Music Entertainment Group (1698 HK): World’s largest music pla...
TME is the world’s largest online music platform by MAU, and has sustained the biggest market share of about 70% in the online music industry since 2016. It operates leading music apps including QQ Music, Kugou Music, Kuwo Music and WeSing. We initiate coverage with a BUY rating and target price of HK$60.00 (US$15.00).
- Carol Dou Xiao Qin
- Colin Lee
- Greater China Research Team
- Johnny Yum Chung Man
- Julia Pan Mengyao
- Ming San Soong
- Sunny Chen
Greater China Daily: Wednesday, April 23, 2025
KEY HIGHLIGHTS Initiate Coverage Tencent Music Entertainment Group (1698 HK/BUY/HK$47.80/Target: HK$60.00) TME is the world’s largest online music platform by MAU, and has sustained the biggest market share of about 70% in the online music industry since 2016. It operates leading music apps including QQ Music, Kugou Music, Kuwo Music and WeSing. We initiate coverage with a BUY rating and target price of HK$60.00 (US$15.00). Results Dian Diagnostics (300244 CH/HOLD/Rmb13.99/Target: Rmb15.00) ...
- Julia Pan Mengyao
- Ming San Soong
Tencent Music Entertainment Group (1698 HK): World’s largest music pla...
Tencent Music Entertainment Group is the world’s largest online music platform by monthly average users, and has sustained the biggest market share of about 70% in the online music industry since 2016. It operates leading music apps including QQ Music, Kugou Music, Kuwo Music and WeSing. We initiate coverage with a BUY rating and target price of HK$60.00 (US$15.00). Music is one of the least competitive verticals in online entertainment. Tencent Music Entertainment Group (TME) operates in a l...
- Pelham Smithers
PSA Strategy: Japan Stock Market Quarterly for 2025 Q2
In this quarterly strategy report, we look to evaluate where we are with regards the bull market conditions, and where those indicators might be headed, factoring in the downside risks, from Trump tariffs and the US economy, BoJ actions, Japanese earnings and valuations.
AMAT APPLIED MATERIALS INC.
6146 DISCO CORPORATION
5108 BRIDGESTONE CORPORATION
7751 CANON INC.
9697 CAPCOM CO. LTD.
4519 CHUGAI PHARMACEUTICAL CO. LTD.
4755 RAKUTEN INC.
9684 SQUARE ENIX HOLDINGS CO. LTD.
8473 SBI HOLDINGS INC.
6954 FANUC CORPORATION
4324 DENTSU GROUP INC.
6861 KEYENCE CORPORATION
6869 SYSMEX CORPORATION
8306 MITSUBISHI UFJ FINANCIAL GROUP INC.
6501 HITACHI LTD.
6305 HITACHI CONSTRUCTION MACHINERY CO. LTD.
7267 HONDA MOTOR CO. LTD.
6301 KOMATSU LTD.
6503 MITSUBISHI ELECTRIC CORP.
6723 RENESAS ELECTRONICS CORPORATION
7974 NINTENDO CO. LTD.
6594 NIDEC CORPORATION
7731 NIKON CORP.
8604 NOMURA HOLDINGS INC.
7733 OLYMPUS CORP.
4666 PARK24 CO. LTD.
2371 KAKAKU.COM INC.
9984 SOFTBANK GROUP CORP.
1803 SHIMIZU CORPORATION
4063 SHIN-ETSU CHEMICAL CO LTD
6758 SONY CORPORATION
7269 SUZUKI MOTOR CORP.
1801 TAISEI CORP
6857 ADVANTEST CORP.
4186 TOKYO OHKA KOGYO CO. LTD.
8035 TOKYO ELECTRON LTD.
7203 TOYOTA MOTOR CORP.
2413 M3 INC.
2160 GNI GROUP LTD.
3659 NEXON CO. LTD.
6098 RECRUIT HOLDINGS CO. LTD.
3769 GMO PAYMENT
6460 JP SEGA SAMMY
4385 MERCARI INC.
3993 PKSHA TECHNOLOGY INC.
9434 SOFTBANK CORP.
78320 BANDAI NAMCO
45870 PEPTIDREAM INC
3491 JT GA TECHNOLOGIES
3394 JT MONEY FOWARD
6532 JT BAYCURRENT CONSULTING (6532 JT)
4483 JMDC
4180 JP APPIER GROUP
TSE: 2980 SRE HOLDINGS CORP
4194 VISIONAL INC
6526 SOCIONEXT INC
5032 JT ANYCOLOR INC
5838 RAKUTEN BANK LTD.
5253 JT COVER CORPORATION (5253 JT)
9616 JT KYORITSU MAINTENANCE (9616 JT)
- Jin Yoon
TME 4Q24 Results: OMS Remain Resilient in FY25
What’s new: TME’s reported 4Q24 results that were above consensus and our expectations. Online music revs could remain resilient partly driven by subscription and ads. Margins could see further upside in FY25 partly driven by better rev mix and continued cost controls. We up our PT from USD14 to USD17 on resiliency of the online music segment. Our updated PT of USD17 implies 20.5x FY25E P/E. We maintain our BUY rating. Analysts: Jin Yoon
- Pelham Smithers
PSA Electronic Equipment / Instruments: Keyence (6861 JT) – In-depth A...
Tags: Nidec (6594 JT), Makino Milling (6135 JT), Fanuc (6954 JT), Harmonic Drive (6324 JT), Honeywell (HON US), Apple (AAPL US), Alphabet (GOOGL US), Microsoft (MSFT US), Omron (6645 JT), Azbil (6845 JT), Yokogawa Electric (6841 JT), Hioki EE (6866 JT), Sysmex (6869 JT), Accenture (ACN US), Sewtec Automation (pvt), Ebay (EBAY US), GTRIC (pvt), Murata (6981 JT), Internet Initiative Japan (3774 JT), Recruit (6098 JT), Monotaro (3064 JT) Despite high valuations and a dull share price performance o...
- Pelham Smithers
PSA Technology: Semiconductor Industry 2025 Outlook
Following the recent results season where several leading semiconductor and SPE companies globally produced either disappointing results or guidance, we look at where the semiconductor industry is at present, where it looks to be headed in 2025 and identify opportunities in the Japanese IC / SPE space.
005930 SAMSUNG ELECTRONICS CO. LTD.
TSFA TAIWAN SEMICONDUCTOR MANUFACTURING CO. LTD. SPONSORED ADR
WDC WESTERN DIGITAL CORPORATION
TER TERADYNE INC.
ORCL ORACLE CORPORATION
ON ON SEMICONDUCTOR CORPORATION
NVDA NVIDIA CORPORATION
MU MICRON TECHNOLOGY INC.
LRCX LAM RESEARCH CORPORATION
INTC INTEL CORPORATION
GOOGL ALPHABET INC. CLASS A
COHR COHERENT INC.
AMAT APPLIED MATERIALS INC.
NFLX NETFLIX INC.
MRVL MARVELL TECHNOLOGY GROUP LTD.
7751 CANON INC.
9697 CAPCOM CO. LTD.
6383 DAIFUKU CO. LTD.
7735 SCREEN HOLDINGS CO. LTD
5803 FUJIKURA LTD
6861 KEYENCE CORPORATION
6501 HITACHI LTD.
000660 SK HYNIX INC
6920 LASERTEC CORP.
6728 ULVAC INC.
6723 RENESAS ELECTRONICS CORPORATION
6902 DENSO CORPORATION
6701 NEC CORP.
7731 NIKON CORP.
7201 NISSAN MOTOR CO. LTD.
7105 MITSUBISHI NICHIYU FORKLIFT
6963 ROHM CO. LTD.
9984 SOFTBANK GROUP CORP.
6758 SONY CORPORATION
6857 ADVANTEST CORP.
8035 TOKYO ELECTRON LTD.
7203 TOYOTA MOTOR CORP.
AIR AIR PARTNER PLC
5930 SAMSUNG ELECTRONICS CO LTD
AMZN AMAZON.COM INC.
AMD ADVANCED MICRO DEVICES INC.
AAPL APPLE INC.
MSFT MICROSOFT CORPORATION
STM STMICROELECTRONICS NV
00981 SEMICONDUCTOR MANUFACTURING INTERNATIONAL CORP.
AVGO BROADCOM INC.
3993 PKSHA TECHNOLOGY INC.
6600 JT KIOXIA HOLDINGS (6600 JT)
ASO ACADEMY SPORTS AND OUTDOORS
CRSR CORSAIR GAMING
WOLF WOLFSPEED INC
TSE: 2980 SRE HOLDINGS CORP
688728 GALAXYCORE INC
688234 SICC CO LTD
6526 SOCIONEXT INC
6526 JT SOCIONEXT (6526 JT)
ARM ARM HOLDINGS PLC
ACCL DOLOMITE HOLDINGS LTD
- Jin Yoon
TME 3Q24 Results: Further Upside in Margin in FY25
What’s new: TME’s reported 3Q24 top-line results that were largely in-line with consensus and our expectations. Subscription revs could remain resilient partly driven by stable quarterly net adds and higher monthly ARPPU. Margins could see further upside in 4Q24 and into FY25 partly driven by better rev mix and continued cost controls. We maintain our PT at USD14. Analysts: Jin Yoon
- Pelham Smithers
PSA Strategy: Japan Stock Market Quarterly 2024 Q4
When the BoJ raised rates in March, it had been 17 years since it had last done so, though the world was very different then. While the July rate hike was unlikely to move the economic needle, the question now is what else might follow the subsequent financial market maelstrom. Pelham Smithers discusses the outlook for Japan’s macro environment, what new fiscal policies the new PM might introduce, how the BoJ might react and the all-important trend in corporate earnings. This then leads us to...
6754 ANRITSU CORPORATION
7751 CANON INC.
4519 CHUGAI PHARMACEUTICAL CO. LTD.
4751 CYBERAGENT INC.
4755 RAKUTEN INC.
3107 DAIWABO HOLDINGS CO. LTD.
8473 SBI HOLDINGS INC.
6954 FANUC CORPORATION
4324 DENTSU GROUP INC.
6861 KEYENCE CORPORATION
4902 KONICA MINOLTA INC.
6988 NITTO DENKO CORP.
7752 RICOH COMPANY LTD.
6869 SYSMEX CORPORATION
3064 MONOTARO CO. LTD.
5801 FURUKAWA ELECTRIC CO. LTD.
5715 FURUKAWA CO. LTD.
7205 HINO MOTORS LTD.
6501 HITACHI LTD.
6305 HITACHI CONSTRUCTION MACHINERY CO. LTD.
7267 HONDA MOTOR CO. LTD.
7012 KAWASAKI HEAVY INDUSTRIES LTD.
9107 KAWASAKI KISEN KAISHA LTD.
6971 KYOCERA CORPORATION
8316 SUMITOMO MITSUI FINANCIAL GROUP INC.
6503 MITSUBISHI ELECTRIC CORP.
5632 MITSUBISHI STEEL MANUFACTURING CO. LTD.
5706 MITSUI MINING AND SMELTING COMPANY LIMITED
6966 MITSUI HIGH-TEC INC.
6902 DENSO CORPORATION
6701 NEC CORP.
6594 NIDEC CORPORATION
7201 NISSAN MOTOR CO. LTD.
4666 PARK24 CO. LTD.
6268 NABTESCO CORPORATION
2371 KAKAKU.COM INC.
9984 SOFTBANK GROUP CORP.
8136 SANRIO COMPANY LTD.
6758 SONY CORPORATION
5802 SUMITOMO ELECTRIC INDUSTRIES LTD.
6762 TDK CORPORATION
6976 TAIYO YUDEN CO. LTD.
6315 TOWA CORPORATION
7203 TOYOTA MOTOR CORP.
4208 UBE INDUSTRIES LTD.
8698 MONEX GROUP INC.
3774 INTERNET INITIATIVE JAPAN
3765 GUNGHO ONLINE ENTERTAINMENT INC.
2160 GNI GROUP LTD.
3659 NEXON CO. LTD.
3445 RS TECHNOLOGIES CO. LTD.
6269 MODEC INC
3769 GMO PAYMENT
68900 FERROTEC CORPORATION
9519 RENOVA
4385 MERCARI INC.
3993 PKSHA TECHNOLOGY INC.
3626 JT TIS INC
9434 SOFTBANK CORP.
TXG 10X GENOMICS INC CLASS A
TGIF 1933 INDUSTRIES
7071 AMVIS HOLDINGS
78320 BANDAI NAMCO
45870 PEPTIDREAM INC
4443 JT SANSAN (4443 JT)
3491 JT GA TECHNOLOGIES
3394 JT MONEY FOWARD
4480 MEDLEY
RRRP3 3R PETROLEUM OLEO E GAS
6532 JT BAYCURRENT CONSULTING (6532 JT)
3697 JT SHIFT INCORPORATED (3697 JT)
4483 JMDC
4180 JP APPIER GROUP
TSE: 2980 SRE HOLDINGS CORP
4194 VISIONAL INC
9552 M&A RESEARCH INSTITUTE
123F 123FAHRSCHULE SE
9616 JT KYORITSU MAINTENANCE (9616 JT)
9552 JT M&A RESEARCH INSTITUTE (9552 JT)
6544 JT JAPAN ELEVATOR SERVICES HOLDINGS (6544 JT)
6200 JT INSOURCE (6200 JT)
2154 JT OPEN UP GROUP (2154 JT)
- Alvaro del Pozo
- Jin Yoon
TME 2Q24 Results: Focus Shift Towards ARPU
What’s new: TME’s reported 2Q24 top-line results that were largely in-line with consensus and our expectations. TME is taking a proactive approach to focus on ARPU to drive subscription revs going forward. While mid-term paying subscriber target remains intact, the pace of net adds could be slower than our initial expectations. We lower our PT from USD17 to USD14 on lowered outlook. Our revised PT of USD14 implies a 18.2x FY25 P/E. We maintain our BUY rating. Analysts: Jin Yoon
- Jin Yoon
TME 1Q24 Results: Improving Margin Outlook
What’s new: TME’s 1Q24 results were above consensus and our expectations. Margins could see further upside in FY24 partly driven by better rev mix and continued cost controls. We up our PT from USD13 to USD17 on an improving margin outlook. Our revised PT of USD17 implies a 21.3x FY25 P/E. We maintain our BUY rating. Analysts: Jin Yoon
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