Tencent Music Entertainment Group ADR

TME: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	tD	LOCK\|Yt@zd	LOCK\|&kJpGZ

Tencent Music Earnings: Long Runway for Subscription Price Hikes; Shares Undervalued

Ivan Su

Nov 13, 2024

Narrow-moat Tencent Music's third-quarter results were broadly in line with our expectations, and management's 2025 guidance, particularly the stable outlook for livestreaming and rising profitability, reinforces our midteens earnings per share growth forecast. We are maintaining our USD 17.20/HKD 67 fair value estimate and continue to view the shares, which currently trade more than 30% below our valuation, as undervalued. We believe the market underestimates the size of Tencent Music’s long-term subscriber base and the opportunity to lift subscription prices further.

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Tencent Music Entertainment Group ADR

Tencent Music Earnings: Long Runway for Subscription Price Hikes; Shares Undervalued

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