reports
- 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...
- 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
- 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
- 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
- Tian Hou
TME: Increase In Paying Users Drive Solid Online Music Service Perform...
TME will report 2Q23 results on August 15th before the markets open with an 8am ET conference call. We are positive on TME’s performance in 2Q23 and outlook for 2023. The long-awaited economic stimulus policies have started to come out since late July 2023. On June 25th, the State Think Tank CMF released its paper “Solidifying Foundation for Recovery, China’s Macroeconomy in 2023”. The paper not only pointed out 5 main issues but also emphasized that these issues cannot be resolved by themselves...
TENCENT MUSIC ENTER sees a downgrade to Negative on account of less fu...
The independent financial analyst theScreener just lowered the general evaluation of TENCENT MUSIC ENTER (US), active in the Broadcasting & Entertainment industry. As regards its fundamental valuation, the title now shows 2 out of 4 stars while market behaviour can be considered risky. theScreener believes that the title remains under pressure due to the loss of a star(s) and downgrades its general evaluation to Negative. As of the analysis date January 21, 2022, the closing price was USD 6.39 a...
- Tian Hou
TME: Copyright Issues Had Limited Impact On Music Services; Expecting ...
TME will report 3Q21 results on November 8th after the close of the markets followed by an 8pm EST conference call. As 3Q21 was a period of intensive policies, TME was negatively impacted. The impact is likely to wear out in 2H2022. Therefore, for 3Q21, we expect the company’s subscription business to continue to do relatively better while its live streaming business can be lagging.
- Tian Hou
TME: Music Subscription Business Strong In 1Q21
TME will report 1Q21 results on May 17th after the close of the markets followed by an 8pm EST conference call. Based on our data, we estimate that total revenue is likely to be better than consensus expectation at RMB7,737M driven by the growth of its music services. New paying subscribers are likely to be higher than 5M as long form audio is popular in China.
- Tian Hou
TME: More Paying Users To Drive Better 4Q20 Results
TME will report 4Q20 results on March 22nd after the close of the markets followed by an 8pm EST conference call. Based on our data, we estimate that total revenue is likely to be better than consensus at RMB8,332M. In 4Q20, the music subscription business was still in high growth driven by higher paying members and flat ARPU; social entertainment showed recovery in ARPU with stable users. In 4Q20, TME announced that it has been expanding its independent music portfolio by signing new licensing ...
- Tian Hou
TME: Adding More Paying Users To QQ Music; More Live Concerts To Offse...
TME will report 3Q20 results on November 10th after the close of the markets followed by an 8pm EST conference call. Based on our data, we estimate that total revenue is likely to be at least in line with consensus at RMB7,496M. In 3Q20, the music subscription business was still in high growth driven by higher paying members and flat ARPU; social entertainment showed recovery in ARPU with stable users. QQ music released a new version with live broadcast function on June 8, 2020, and until the en...
- Tian Hou
TME: Continued Improvement To Its Business With New Initiatives; Expec...
TME will report 2Q20 results on August 10th after the close of the markets followed by an 8pm EST conference call. Based on our data, we estimate that total revenue is likely to be at least in line with consensus at RMB6,848M. In 2Q20, the music subscription business continued to experience high growth in terms of paying members and flat ARPU; social entertainment showed recovery in ARPU and stable users.
- Tian Hou
TME: Outbreak Had Limited Impact On Online Music But More To Social En...
TME will report 1Q20 results on May 11th after the close of the markets followed by an 8pm EST conference call. 1Q20 is a challenging time for most of the companies in China. For TME, the impact from the outbreak to its online music was limited, but the impact to social entertainment services was bigger. In addition, the government policy in January prohibiting lucky-draw functions in live broadcastings also pressured its social entertainment services. Putting all together, based on our data, we...
- Tian Hou
TME: More Partnerships With Leading Traffic Vendors Are Likely to Lead...
The outbreak of the coronavirus does not have much of an impact on TME, but the government’s policy issued at the end of January 2020 impacts TME’s social entertainment services. The policy prohibits the lucky-draw function in live broadcastings. However, comparing with TME’s business initiatives in January 2020, we believe more positives are likely to happen throughout 2020. In January, TME’s initiated intensive cooperation and partnership activities with leading traffic vendors including TikTo...
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