Core Viewpoint - Jianyin International expresses optimism about Tencent Music's leadership position and sustainable profitability, attributing this to its differentiated business model, quality content, user base, and diversified revenue sources [1] Group 1: Financial Performance - Tencent Music's Q3 2025 performance slightly exceeded expectations, with total revenue and Non-GAAP net profit surpassing institutional forecasts by 3% and 4% respectively, driven by growth in non-subscription music service revenue [1] - For Q4 2025, revenue is expected to increase by 12.6% year-on-year to 8.4 billion RMB, with a net addition of 1.3 million music subscription users, bringing the total to 127 million [1] - Average revenue per paying user (ARPPU) is projected to rise by 9.9% year-on-year to 12.2 RMB, with gross margin expected to increase by 1.6 percentage points quarter-on-quarter to 45.1% [1] Group 2: Investment Outlook - Jianyin International maintains a "Outperform" rating for Tencent Music, setting a target price of 105.7 HKD, suggesting that the recent stock price pullback presents a good buying opportunity [1] - The report highlights that Q4 is typically a low season for concerts but a peak season for advertising, which may positively impact revenue [1]

Core Viewpoint - Jianyin International expresses a positive outlook on Tencent Music (01698), highlighting its leadership position and sustainable profitability due to its differentiated business model, quality content, user base, and diversified revenue streams [1] Financial Performance - Tencent Music's Q3 2025 results slightly exceeded expectations, with total revenue and Non-GAAP net profit surpassing institutional forecasts by 3% and 4% respectively, driven by growth in non-subscription music service revenue [1] - For Q4 2025, revenue is expected to increase by 12.6% year-on-year to 8.4 billion RMB, with a net addition of 1.3 million music subscription users, bringing the total to 127 million [1] - Average revenue per paying user (ARPPU) is projected to rise by 9.9% year-on-year to 12.2 RMB, with gross margin expected to increase by 1.6 percentage points quarter-on-quarter to 45.1% [1] - Non-GAAP net profit is anticipated to grow by 10% year-on-year to 2.5 billion RMB [1] Investment Recommendation - Jianyin International maintains a "Outperform" rating with a target price of 105.7 HKD, suggesting that the recent stock price pullback presents a good buying opportunity [1]

Core Viewpoint - Tencent Music is focusing on profitability over user growth, as evidenced by its financial performance in Q3, which shows significant revenue and profit growth despite a decline in active users [1][2]. Financial Performance - Tencent Music's revenue in Q3 increased by 20.6% year-on-year to 8.46 billion yuan, while adjusted net profit rose by 32.6% to 2.405 billion yuan [1]. - Online music revenue grew by 27.2% to 6.97 billion yuan, accounting for 82.3% of total revenue, an increase of 4.2 percentage points year-on-year [1]. - Subscription revenue from Tencent Music's members increased by 17.2% to 4.5 billion yuan, with the number of paying users growing by 5.6% to 126 million [1]. User Engagement - The monthly active users (MAU) for Tencent Music's online music platform decreased by 4.3% year-on-year to 551 million [1]. - The growth rate of paying users has slowed, with a 6.3% increase in Q2 compared to previous periods [1]. Non-Subscription Revenue Growth - Tencent Music's non-subscription revenue grew by over 50% year-on-year to 2.47 billion yuan in Q3 [2]. - The company achieved significant growth in offline performances, hosting 14 sold-out shows for G-DRAGON across six cities, attracting over 150,000 attendees [2]. Strategic Initiatives - Tencent Music plans to expand its performance business and introduce more headliner events to enhance user engagement and drive SVIP subscription growth [2]. - The company is also expanding its artist roster by introducing 15 new Chinese label artists to attract a broader audience [2].

Core Viewpoint - Tencent Music is focusing on revenue generation over user traffic, as evidenced by its financial performance in Q3, which shows significant growth in revenue and adjusted net profit [1][3]. Financial Performance - In Q3, Tencent Music's revenue increased by 20.6% year-on-year to 8.46 billion yuan, while adjusted net profit rose by 32.6% to 2.405 billion yuan [1]. - Online music revenue grew by 27.2% to 6.97 billion yuan, accounting for 82.3% of total revenue, an increase of 4.2 percentage points year-on-year [1]. - Subscription revenue from online music increased by 17.2% to 4.5 billion yuan, with the number of paying users growing by 5.6% to 126 million [1][2]. User Engagement and Challenges - Despite revenue growth, the monthly active users (MAU) for online music declined by 4.3% year-on-year to 551 million [1]. - The growth rate of paying users has slowed, with a 6.3% increase noted in Q2 [2]. Strategic Initiatives - Tencent Music is actively developing non-subscription revenue streams, which grew over 50% year-on-year to 2.47 billion yuan in Q3 [3]. - The company has seen significant growth in live performances, hosting 14 sold-out shows for G-DRAGON across six cities, attracting over 150,000 attendees [3]. - Plans to expand the live performance business and introduce more headliner events are in place, aiming to enhance user engagement and drive SVIP subscription growth [3]. Market Reaction - On November 14, Tencent Music's stock closed at 75.6 HKD, reflecting a decline of 10.69% [5].

Core Viewpoint - The company reported a total revenue of 8.46 billion RMB for Q3 2025, representing a year-over-year increase of 20.6%, exceeding Bloomberg's consensus estimate of 8.23 billion RMB, primarily driven by better-than-expected growth in non-subscription business revenue [4] Revenue Structure - Online music revenue reached 6.97 billion RMB, up 27.2% year-over-year, accounting for 82.3% of total revenue, an increase of 4.2 percentage points year-over-year. Revenue from social entertainment services and other sources declined by 2.7% [5] Online Music Revenue Details - Subscription revenue was 4.5 billion RMB, growing 17.2% year-over-year, with a music MAU of 551 million, down 4.3% year-over-year. The number of paid subscribers reached 126 million, a 5.6% increase year-over-year, with a net addition of 1.3 million users from Q2. ARPPU was 11.9 RMB, up 10.2% year-over-year. The growth was driven by high-quality music content and innovative features [6] - Non-subscription revenue was 2.47 billion RMB, showing over 50% year-over-year growth. The advertising business experienced strong growth, and the company plans to continue this trend into Q4 2025. The live performance segment also saw significant growth, with 14 sold-out shows for G-DRAGON across six cities, attracting over 150,000 attendees [6] Expense Overview - Total expenses for Q3 2025 were 1.31 billion RMB, a year-over-year increase of 7.6%. Sales and marketing expenses were 260 million RMB, up 18.2% due to increased content promotion and channel spending. General and administrative expenses were 1.05 billion RMB, a 5.3% increase driven by rising employee-related costs [7]

Core Viewpoint - The report from Citi indicates that the risk of direct competition between domestic music platforms, particularly NetEase Cloud Music and ByteDance's Soda Music, is low due to strategic positioning and product differentiation [1] Group 1: Company Analysis - NetEase Cloud Music is currently trading at a forecasted adjusted P/E ratio of 17 times for 2026, indicating a strong valuation [1] - The company benefits from a subscription model that is resilient to economic cycles, suggesting stable long-term profitability potential [1] - The target price for NetEase Cloud Music is set at HKD 310.5 [1] Group 2: Industry Insights - The report reaffirms the "outperform" rating for both NetEase Cloud Music and Tencent Music [1] - The differentiation in strategies among platforms reduces the likelihood of intense competition in the music streaming industry [1]

Investment Rating - The report maintains a "Buy" rating for Tencent Music (TME.N) [5] Core Insights - Tencent Music's total revenue for Q3 2025 reached 8.46 billion RMB, a year-over-year increase of 20.6%, surpassing Bloomberg's consensus estimate of 8.23 billion RMB, driven by better-than-expected growth in non-subscription revenue [1] - The adjusted net profit attributable to the parent company for Q3 2025 was 2.405 billion RMB, reflecting a year-over-year growth of 32.6% [1] - The online music revenue was 6.97 billion RMB, up 27.2% year-over-year, accounting for 82.3% of total revenue, while social entertainment services and other revenues declined by 2.7% [1] Revenue Structure Summary - Subscription revenue reached 4.50 billion RMB, growing 17.2% year-over-year, with a music MAU of 551 million, a decrease of 4.3% year-over-year [2] - The number of paid subscribers increased by 5.6% year-over-year to 126 million, with a net addition of 1.3 million users from the previous quarter [2] - Non-subscription revenue was 2.47 billion RMB, showing over 50% year-over-year growth, with strong performance in advertising and live events [2] Expense Summary - Total expenses for Q3 2025 were 1.31 billion RMB, a year-over-year increase of 7.6%, with sales and marketing expenses rising by 18.2% due to increased content promotion and channel spending [3] Profit Forecast and Valuation Summary - The adjusted net profit forecast for 2025-2027 has been slightly revised down to 9.70 billion RMB, 10.98 billion RMB, and 12.51 billion RMB, respectively [3] - Revenue projections for 2025, 2026, and 2027 are 32.78 billion RMB, 37.30 billion RMB, and 41.92 billion RMB, with growth rates of 15.4%, 13.8%, and 12.4% respectively [4]

格隆汇11月13日｜里昂发表报告指，网易云音乐和腾讯音乐过去一周股价表现落后，因市场忧虑字节跳 动旗下汽水音乐带来的竞争加剧。在用户快速增长的背景下，汽水音乐过去一年在内容及变现策略上保 持一致，没有显著变化。该行认为，由于各平台战略定位及产品差异化，直接爆发正面竞争的风险较 低，重申对网易云音乐和腾讯音乐"跑赢大市"评级。 ...

Core Insights - Tencent Music reported a total revenue of 8.46 billion RMB for Q3 2025, representing a year-on-year growth of 20.6% and an adjusted net profit of 2.48 billion RMB, up 27.7% year-on-year [1] - The online music service revenue reached 6.97 billion RMB, a 27.2% increase year-on-year, while online music subscription revenue was 4.5 billion RMB, growing 17.2% year-on-year [1] - The average revenue per paid user per month increased from 10.8 RMB in Q3 2024 to 11.9 RMB in Q3 2025 [1] Business Highlights - The company enhanced partnerships with well-known record labels and artists, expanding its comprehensive music library [1] - Collaborations with leading game developers were noted, including a partnership with Tencent Games for the 10th anniversary theme song of "Honor of Kings" and a first-time collaboration with Blizzard Entertainment to introduce 50 classic game soundtracks [1] Financial Metrics - Total costs for Q3 increased by 18.8% to 4.78 billion RMB, primarily due to rising costs associated with offline concerts, IP-related expenses, and advertising agency fees [2] - The gross margin improved from 42.6% in Q3 2024 to 43.5% in Q3 2025, driven by growth in music subscription and advertising service revenues [2] Cash Position - As of September 30, 2025, the company held cash, cash equivalents, time deposits, and short-term investments totaling 36.08 billion RMB [3]

Core Viewpoint - Morgan Stanley's research report indicates that Tencent Music's total revenue for Q3 grew by 21% year-on-year to 8.5 billion yuan, exceeding the bank's expectations by 2.8% [1] Revenue Summary - Music subscription revenue increased by 17% year-on-year to 4.5 billion yuan, roughly in line with Morgan Stanley's expectations [1] - The number of paying users rose by 1.3 million quarter-on-quarter, with average revenue per paying user (ARPPU) at 11.9 yuan per month, reflecting an 11% year-on-year growth [1] Profitability Summary - Adjusted net profit under non-International Financial Reporting Standards grew by 33% year-on-year to 2.4 billion yuan, surpassing Morgan Stanley's expectations by 5.1% [1] - Gross margin stood at 44.6%, down 0.8 percentage points quarter-on-quarter but up 0.7 percentage points year-on-year, primarily benefiting from strong operating leverage in the music subscription business and the effectiveness of self-produced content [1] Future Outlook - Morgan Stanley is awaiting further insights on future prospects during the earnings conference and has set a target price of $27.5 for its U.S. stock with an "Overweight" rating [1]