Strong Financial Performance and Strategic Investments Drive Buy Rating for Tencent Music

Tip Ranks
2025.11.13 13:35
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Saiyi He from CMB International Securities maintained a Buy rating for Tencent Music Entertainment Group with a $28.00 price target, citing strong financial performance and strategic investments. The company's Q3 2025 revenue increased by 21% YoY, and non-IFRS net income rose by 33%, surpassing estimates. Growth was driven by non-subscription music businesses. Future revenue growth is expected from content investments and new monetization opportunities. Mizuho Securities also maintained a Buy rating with a $28.00 price target.

Saiyi He, an analyst from CMB International Securities, maintained the Buy rating on Tencent Music Entertainment Group. The associated price target is $28.00.

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Saiyi He has given his Buy rating due to a combination of factors including Tencent Music Entertainment Group’s strong financial performance and strategic investments. The company’s total revenue increased by 21% year-over-year in the third quarter of 2025, with non-IFRS net income rising by 33%, surpassing Bloomberg’s consensus estimates. This growth was primarily driven by the impressive performance of non-subscription music businesses such as advertisements and offline performances.
Looking forward, Saiyi He expects Tencent Music to continue its revenue growth, albeit at a slightly slower pace, as the company invests in content and new monetization opportunities like offline performances and artist-related merchandise. Despite the potential short-term impact on margins, these investments are anticipated to support sustainable long-term growth. The strong performance of the online music business, with a 27% year-over-year increase in revenue, further supports the Buy rating, as it is driven by both subscription and non-subscription revenue streams.

In another report released today, Mizuho Securities also maintained a Buy rating on the stock with a $28.00 price target.

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