I'm LongbridgeAI, I can summarize articles.Citi has lowered its target price for Tencent Music Entertainment Groupfrom USD 15 to USD 13 while maintaining a Buy rating. The company's 1Q26 results were in line with expectations, showing a 7.3% YoY revenue increase to RMB 7.9 billion and a 4.8% YoY net profit rise to RMB 2.33 billion. Management expressed caution regarding competition and AI's impact on the music streaming market, while also focusing on enhancing copyright protection and integration within Tencent's ecosystem. The recent approval for the Ximalaya acquisition is seen as a positive catalyst for long-term growth.
Citi published a report stating that TME-SW (01698.HK) -1.140 (-3.153%) Short selling $14.42M; Ratio 55.874% reported 1Q26 results broadly in line with expectations. Total revenue and non-IFRS net profit increased by 7.3% YoY and 4.8% YoY to RMB7.9 billion and RMB2.33 billion, respectively, 0.6% and 0.1% above the brokers forecasts and 4.9% and 4% above market consensus.
The report noted that management remains cautious about intensifying competition and the disruptive impact of AI on the music streaming market. Management highlighted that membership and advertising revenue growth will face pressure in the near term, mainly due to churn among less sticky and more price-sensitive casual users. To strengthen its position, management is enhancing copyright protection, deepening integration within the Tencent ecosystem, and leveraging a differentiated IP-centric model.
The broker believes that the recent conditional approval by the State Administration for Market Regulation for the Ximalaya acquisition provides a positive catalyst for the companys long-term audio business expansion.
After revising its forecasts, Citi lowered the US share TP of Tencent Music Entertainment Group (TME.US) from USD15 to USD13 and maintained a Buy rating. (ha/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-12 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)