<div id="readability-page-1" class="page"><div><ul> <li>In the past quarter, Keystone Investors Pte Ltd exited its entire holding in Tencent Music Entertainment Group, while the company continued shifting its revenue mix away from virtual gifting toward music subscriptions in China’s growing paid streaming market.</li> <li>This combination of a major shareholder departure and an evolving business model has sharpened focus on Tencent Music’s ability to grow subscribers, increase average revenue per user and manage content costs amid competition.</li> <li>Next, we’ll examine how Keystone’s full exit and Tencent Music’s pivot toward subscription income may reshape the company’s investment narrative.</li> </ul><p>The latest GPUs need a type of rare earth metal called Terbium and there are only 31 companies in the world exploring or producing it. Find the list for free.</p><h2>Tencent Music Entertainment Group Investment Narrative Recap</h2><p>To stay invested in Tencent Music today, you need to believe its shift from virtual gifting toward subscription streaming can support sustainable earnings while competition and regulation remain manageable. Keystone Investors’ full exit raises questions about sentiment but does not, on its own, change the near term focus on subscriber growth, average revenue per user and content cost control as the key catalyst and risk.</p> <p>The most relevant recent announcement is Tencent Music’s plan to release Q4 2025 and full year 2025 results in March 2026, which should clarify how far the business has progressed in growing paid users and subscription ARPPU relative to rising content and marketing spend. Against the backdrop of a weaker recent share price, this earnings update may be an important checkpoint for investors weighing Keystone’s exit against Tencent Music’s evolving subscription driven model.</p> <p>Yet investors should also weigh how rising content costs and tighter regulation could limit the benefits of this subscription pivot and...</p> <p>Read the full narrative on Tencent Music Entertainment Group (it's free!)</p><p>Tencent Music Entertainment Group's narrative projects CN¥45.8 billion revenue and CN¥13.7 billion earnings by 2028. This requires 14.8% yearly revenue growth and a CN¥3.5 billion earnings increase from CN¥10.2 billion today.</p><p>Uncover how Tencent Music Entertainment Group's forecasts yield a $26.84 fair value, a 82% upside to its current price.</p><h2>Exploring Other Perspectives</h2><figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/3e083072-9928-41b3-9736-e1ce49779ffb/chart/quote-price?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/3e083072-9928-41b3-9736-e1ce49779ffb/chart/quote-price"/><figcaption>TME 1-Year Stock Price Chart</figcaption></figure> <p>Some of the most optimistic analysts expected TME’s revenue to reach about CN¥50.5 billion and earnings CN¥15.9 billion by 2028, but Keystone’s exit and rising content cost concerns highlight how differently you and other investors might view the same risks and potential.</p><p>Explore 6 other fair value estimates on Tencent Music Entertainment Group - why the stock might be worth just $14.53!</p><h2>Reach Your Own Conclusion</h2><p>Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.</p><ul><li>A great starting point for your Tencent Music Entertainment Group research is our analysis highlighting 5 key rewards that could impact your investment decision.</li><li>Our free Tencent Music Entertainment Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Tencent Music Entertainment Group's overall financial health at a glance.</li></ul><h2>Looking For Alternative Opportunities?</h2><p>Don't miss your shot at the next 10-bagger. Our latest stock picks just dropped:</p><ul><li>The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 23 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement.</li><li>We've uncovered the 15 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them.</li><li>Invest in the nuclear renaissance through our list of 84 elite nuclear energy infrastructure plays powering the global AI revolution.</li></ul> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p><div><h3>Valuation is complex, but we're here to simplify it.</h3><p>Discover if Tencent Music Entertainment Group might be undervalued or overvalued with our detailed analysis, featuring <strong>fair value estimates, potential risks, dividends, insider trades, and its financial condition.</strong></p><p>Access Free Analysis</p></div></div></div>

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<p>Keystone Investors Pte Ltd has fully exited its stake in Tencent Music Entertainment Group (TME), which is pivoting from virtual gifting to music subscriptions in China's paid streaming market. This shift raises questions about TME's ability to grow subscribers and manage costs amid competition. The company plans to release its Q4 2025 and full-year results in March 2026, which will be crucial for investors. Despite concerns over rising content costs and regulation, TME's revenue is projected to reach CN¥45.8 billion by 2028, with a fair value estimate of $26.84, indicating an 82% upside from its current price.</p>

- Keystone Investors Pte Ltd has completely exited its position in Tencent Music Entertainment Group while the company shifts from virtual gifting to subscription revenue in the growing Chinese streaming market.  
- This transition, alongside the departure of a major shareholder, highlights Tencent Music's need to grow its subscriber base and manage content costs amid increasing competition.  
- The upcoming Q4 2025 results, expected in March 2026, will provide insights into Tencent Music's progress in acquiring paid users and adjusting to rising content expenses.

Simplywall

What Tencent Music Entertainment Group (TME)'s Major Shareholder Exit and Subscription Pivot Means For Shareholders