In "Major Banks," China International Capital Corporation lowered the target price for Tencent Music to 60.8 yuan and continued to recommend "buy," expecting multiple catalysts to materialize

The research report from Bank of China International indicates that Tencent Music (01698.HK) is expected to achieve a year-on-year revenue growth of 16% in the fourth quarter of 2025, surpassing market expectations. This growth is primarily driven by a 41% year-on-year increase in non-member music business, with strong performance in offline performances and sustained good growth in advertising. The adjusted net profit is projected to be RMB 2.5 billion, representing a year-on-year growth of 9%, in line with market expectations.

Although the company's core copyright content ecosystem and commercialization capabilities remain robust, the bank believes that the growth momentum of the company's core music membership is under pressure. The company is proactively increasing investments to counteract the intensified competitive landscape caused by AI music accelerating the cultivation of decentralized music consumption habits among users. It aims to explore the long-term commercialization potential of IP and seek growth engines, as well as actively embrace and empower AI technology for application across the entire music industry chain.

The bank maintains its confidence in the company's commercialization capabilities and execution, expecting multiple catalytic factors to gradually materialize over time. It maintains a "Buy" rating, with target prices for Tencent Music's Hong Kong stock and Tencent Music (TME.US) in the U.S. set at HKD 60.8 and USD 15.5, respectively