Core Insights - Tencent Music reported third-quarter revenue of 8.46 billion yuan, representing a year-on-year growth of 20.6% [1] - Non-IFRS net profit reached 2.41 billion yuan, up 32.6% year-on-year, slightly exceeding the expectation of 2.3 billion yuan due to better-than-expected performance in non-subscription music business [1] - The company adjusted its Non-IFRS net profit forecasts for the next two years, increasing the 2025 estimate by 1.9% to 9.63 billion yuan and decreasing the 2026 estimate by 4.1% to 10.75 billion yuan [1] - The target prices for US and Hong Kong stocks were lowered by 11.6% and 12.7% to $26 and 100 HKD, respectively, both corresponding to a projected P/E ratio of 26 times for 2026 [1] Financial Performance - Third-quarter revenue: 8.46 billion yuan, up 20.6% year-on-year [1] - Non-IFRS net profit: 2.41 billion yuan, up 32.6% year-on-year, exceeding expectations [1] Forecast Adjustments - 2025 Non-IFRS net profit forecast increased by 1.9% to 9.63 billion yuan [1] - 2026 Non-IFRS net profit forecast decreased by 4.1% to 10.75 billion yuan [1] Target Price Adjustments - US stock target price reduced by 11.6% to $26 [1] - Hong Kong stock target price reduced by 12.7% to 100 HKD [1]

该行认为有关忧虑属过份，相信公司增长故事仍大致维持。腾讯音乐与其他平台不同之处，在于独特内 容及对用户的增值服务。公司透过SVIP渗透及更多产品提供，有望实现稳健的ARPU增长，以及进一步 拓展直播娱乐及粉丝经济业务，有利公司整个用户生态圈，并使未来收入来源进一步多元。该行维持对 腾讯音乐"买入"评级，ADR及港股目标价由27美元及106港元下调至25.2美元及99港元。 高盛发表研报指，腾讯音乐第三季度收入及盈利略胜预期，但绩后股价下滑，相信市场忧虑潜在音乐串 流平台竞争，及其对腾讯音乐订阅增长与定价策略的潜在中期影响；以及直播表现业务波动性与低利润 率，或影响明年整体毛利扩张。 ...

该行认为即使腾讯音乐在2026年会短期加大投入，但公司将凭借其稳固的核心内容、用户资产、营运能 力及产业伙伴的竞争力，以丰富的商业化手段及更雄厚的商业化能力持续产生正向的商业化动能。该行 维持对其"买入"评级，美股目标价由27美元下调至24美元，港股目标价由106港元降至94港元。 格隆汇11月13日｜中银国际发表报告指，腾讯音乐第三季总收入按年增长21%，经调整净利润按年增长 33%，分别超出市场预期3%及4%。受益于付费会员数季度净增130万及月均ARPPU按季增长2%至19 元，音乐会员收入按年增长17%，与市场预期一致。按年增长51%的音乐非会员收入继续大超市场预 期，主要由于持续增长的广告、强劲的线下演唱会及艺人周边贡献。 ...

Core Viewpoint - UBS report indicates that Tencent Music's Q3 revenue increased by 20.6% year-on-year to 8.46 billion yuan, exceeding both UBS and market expectations by 3.1% and 2.9% respectively [1] - Non-GAAP net profit rose by 32.6% year-on-year to 2.41 billion yuan, also surpassing UBS and market forecasts by 4% and 3.8% respectively [1] - The management expects continued strong growth in subscription services and new revenue sources driven by SVIP expansion, diversified content, and enhanced user engagement [1] Financial Performance - Q3 revenue: 8.46 billion yuan, up 20.6% year-on-year [1] - Non-GAAP net profit: 2.41 billion yuan, up 32.6% year-on-year [1] - Non-GAAP net profit margin: 28.4%, exceeding expectations by approximately 0.3 percentage points [1] Market Reaction and Outlook - UBS anticipates a positive reaction from investors to Tencent Music's better-than-expected performance [1] - Investors are awaiting further details on ARPPU trends, SVIP adoption rates, profit margin outlook, and new business strategies [1] - UBS maintains a "Buy" rating on Tencent Music's US stock with a target price of $30 [1]

Core Viewpoint - Cathay Securities maintains an "Overweight" rating for Tencent Music (01698), projecting revenue growth and adjusted net profit for 2025-2027, with a target price of HKD 96.0 for 2026 based on a 25x PE ratio [1] Financial Performance - In Q3 2025, Tencent Music achieved revenue of CNY 8.46 billion, a year-on-year increase of 20.6% [1] - Gross margin stood at 43.5%, up 0.9 percentage points year-on-year [1] - Operating profit reached CNY 2.71 billion, reflecting a 26.4% year-on-year growth, with an operating margin of 32.0%, up 1.5 percentage points [1] - Adjusted net profit was CNY 2.41 billion, a 32.6% increase year-on-year, with an adjusted net margin of 28.4%, up 2.6 percentage points [1] Revenue Drivers - Online music service revenue for Q3 2025 was CNY 6.97 billion, up 27.2% year-on-year, with subscription revenue at CNY 4.5 billion, a 17.2% increase [2] - The number of paying users reached 126 million, a 5.6% year-on-year increase, with a paying penetration rate of 22.8%, up 2.2 percentage points [2] - Average Revenue Per Paying User (ARPPU) was CNY 11.9, a 10.2% increase year-on-year [2] - Offline performances, advertising, and peripheral income contributed to a revenue of CNY 2.47 billion, a significant 50.5% year-on-year growth [2] Content and User Engagement - The multilingual music library has been strengthened through contracts with top artists and the introduction of Japanese and Korean ACG labels [3] - Collaborative music projects with games like "Honor of Kings" have produced popular works such as "Tomorrow's Coordinates" [3] - The G-DRAGON concert series expanded to six countries with 14 performances in Q3 2025, enhancing global industry influence [3] - Innovations in membership systems have improved user engagement, with the new advertising membership attracting free users and increasing daily usage time on the platform [3]

Core Viewpoint - Cathay Securities maintains a "Buy" rating for Tencent Music (01698), projecting revenue growth and adjusted net profit for 2025-2027, with a target price of HKD 96.0 for 2026 based on a 25x PE ratio [1] Financial Performance - Tencent Music achieved revenue of RMB 84.6 billion in Q3 2025, a year-on-year increase of 20.6% with a gross margin of 43.5%, up 0.9 percentage points [1] - Operating profit reached RMB 27.1 billion, reflecting a 26.4% year-on-year growth, with an operating margin of 32.0%, up 1.5 percentage points [1] - Adjusted net profit for Q3 2025 was RMB 24.1 billion, a 32.6% increase year-on-year, with an adjusted net margin of 28.4%, up 2.6 percentage points [1] Revenue Drivers - Online music service revenue was RMB 69.7 billion in Q3 2025, up 27.2% year-on-year, with subscription revenue at RMB 45 billion, a 17.2% increase [2] - The number of paying users reached 126 million, a 5.6% year-on-year increase, with a paid penetration rate of 22.8%, up 2.2 percentage points; ARPPU was RMB 11.9, a 10.2% increase [2] - Offline performances, advertising, and peripheral income contributed to a revenue of RMB 24.7 billion, a significant 50.5% year-on-year growth [2] Content and User Engagement - The multilingual music library has been strengthened through contracts with top artists and the introduction of Japanese and Korean ACG labels [3] - Collaborative music projects with games like "Honor of Kings" have produced hit songs such as "Tomorrow's Coordinates" [3] - The user experience has been enhanced through innovative membership systems, increasing user stickiness and daily usage time for free users [3]

Core Viewpoint - Tencent Music's stock price experienced a significant drop of nearly 13%, reaching a low of 73.95 HKD, despite reporting strong third-quarter earnings with a year-on-year profit increase of 36.01% [1] Financial Performance - For the third quarter ending September, Tencent Music reported a shareholder profit of 2.153 billion HKD, which is a 36.01% increase year-on-year [1] - The basic earnings per share were reported at 0.7 HKD [1] - Under non-IFRS standards, the net profit attributable to equity holders was 2.405 billion HKD, reflecting a year-on-year increase of 32.58% [1] Market Reaction - Following the earnings announcement, Tencent Music's stock saw a trading volume exceeding 300 million HKD [1] - Bank of America noted that the earnings were generally in line with expectations but highlighted the absence of disclosed SVIP numbers, which were 15 million in the previous quarter [1] - Concerns regarding competition from ByteDance have increased among investors, potentially impacting short-term market sentiment [1] Analyst Ratings - Bank of America maintains a "Neutral" rating for Tencent Music, with a target price of 98.13 HKD for the Hong Kong stock and 25 USD for the US stock [1]

Core Insights - Citigroup's research report indicates that Tencent Music's total revenue for Q3 increased by 20.6% year-on-year to 8.46 billion yuan, exceeding both Citigroup's and market expectations by 3% [1] Revenue Breakdown - Online music service revenue grew by 27.2% year-on-year to 6.97 billion yuan, surpassing Citigroup's expectations by 4%, driven by robust growth in music subscription revenue, as well as increases in offline performances, advertising services, and artist merchandise [1] - Subscription revenue rose by 17.2% year-on-year to 4.5 billion yuan, accounting for approximately 53% of total revenue [1] - Social entertainment revenue declined by 2.7% year-on-year to 1.49 billion yuan, falling short of Citigroup's expectations by 1% [1] Profitability Metrics - Adjusted net profit for the period was 2.48 billion yuan, representing a year-on-year increase of 28%, exceeding Citigroup's and market expectations by 8% and 7% respectively, attributed to better-than-expected revenue and improved gross margins, although partially offset by increased operating expenses [1] Investment Rating - Citigroup has set a target price of $29 for Tencent Music's U.S. shares and maintains a "Buy" rating [1]

Core Viewpoint - The report from CICC indicates that Tencent Music (01698) is expected to see significant growth in new business in 2025, with projected Non-IFRS net profits of 9.63 billion yuan and 10.75 billion yuan for 2025 and 2026 respectively, maintaining an outperform rating in the industry [1] Group 1: Financial Performance - In Q3 2025, Tencent Music reported revenues of 8.46 billion yuan, a year-on-year increase of 20.6%, and Non-IFRS net profit of 2.41 billion yuan, up 32.6%, slightly exceeding CICC's expectations [2] - The company’s online music subscription revenue in Q3 2025 grew by 17.2% to 4.49 billion yuan, with a net increase of 1.3 million paying users, reaching a total of 126 million [3] Group 2: Business Segments - The subscription business shows profitability resilience, while non-subscription business demonstrates growth potential, with non-subscription revenue in Q3 2025 increasing by 50.3% to 2.48 billion yuan, driven by concert and artist economy revenues [3] - The company expects a continued increase in paid users and ARPPU, projecting a rise to 12.1 yuan/month in Q4 2025 [3] Group 3: Margin and Investment - Q3 2025 gross margin was 43.5%, with stable sales expenses and a 5.3% year-on-year increase in management expenses; the company is investing in offline performances and IP economy, which may impact short-term margins but is expected to support long-term growth [4] - The fluctuation in gross margin is attributed to the rising proportion of concert-related revenues, with expectations for a rebound in Q4 2025 [4] Group 4: Strategic Direction - The company is committed to a dual-wing strategy, focusing on deepening collaborations with global record labels and enhancing its own IP matrix, while innovating product features and services to expand multi-terminal scenarios [5] - Content payment, content privileges, and functional privileges are identified as key growth drivers, with the potential for increased commercial advantages through deeper value extraction from the music entertainment industry [5]

Core Viewpoint - The report from CICC indicates that Tencent Music (01698) is expected to see significant growth in new business in 2025, with projected Non-IFRS net profits of 9.63 billion and 10.75 billion yuan for 2025 and 2026 respectively, maintaining an outperform rating in the industry [1] Group 1: Financial Performance - Tencent Music's Q3 2025 performance slightly exceeded expectations, with revenue of 8.46 billion yuan, a year-on-year increase of 20.6%, and Non-IFRS net profit of 2.41 billion yuan, a year-on-year increase of 32.6% [2] - The subscription music business shows resilience, with Q3 2025 subscription revenue increasing by 17.2% to 4.49 billion yuan, and the number of paying users rising by 1.3 million to 12.6 million [2] - Non-subscription revenue grew significantly by 50.3% to 2.48 billion yuan in Q3 2025, driven by rapid growth in concert and artist economy revenues [2] Group 2: Business Strategy and Growth Potential - The company is focusing on a dual-wing strategy to explore the full value of the industry chain, enhancing cooperation with global record companies and building its own IP matrix [3] - The company aims to innovate product features and services to expand multi-terminal scenarios, with content payment and privileges forming important growth drivers [3] - The investment in new business may impact short-term gross margins, but the company maintains a positive outlook for long-term operational leverage [2]