<div id="readability-page-1"><div><p>CICC issued a report stating that TME-SW (01698.HK)<span> </span><span> -0.720 (-2.105%)  </span> <span> Short selling $3.00M; Ratio 16.765%  </span>  recorded 1Q revenue of RMB7.895 billion, up 7% YoY. Non-IFRS net profit rose 7% YoY to RMB2.273 billion, broadly in line with the brokers forecast of RMB2.229 billion and market consensus of RMB2.244 billion. Gross margin for the quarter increased 0.2 ppts QoQ to 44.9%, mainly driven by higher revenue from music-related membership services and lower channel costs.</p><p>The report noted that the State Administration for Market Regulation approved Tencents acquisition of a stake in Ximalaya on May 12, subject to restrictive conditions, including prohibitions on raising service prices, reducing the proportion of free content, implementing exclusive licensing, and bundling sales. Considering that Ximalaya may be consolidated in 2H26 and that expenses could rise, CICC lowered its 2026 Non-IFRS net profit forecast for TME-SW by 1.6% to RMB10.2 billion, and expects online music revenue to grow 8.3% YoY in 2Q.</p><p>CICC maintained its Outperform rating on TME-SW, but due to market concerns over the competitive landscape, cut its TP for the Hong Kong-listed H shares by 17.8% to HKD55.5. The TP for Tencent Music Entertainment Group (TME.US)<span> </span>  <span> </span>   was lowered to USD14.3. (da/j)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-15 12:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)</p></div></div>

01698

<p>CICC has cut the target price for Tencent Music Entertainment Group (TME-SW) to HKD55.5, a 17.8% decrease, while maintaining an Outperform rating. The company reported a 1Q revenue of RMB7.895 billion, up 7% YoY, with a non-IFRS net profit of RMB2.273 billion. The report also noted regulatory conditions on Tencent's acquisition of Ximalaya, leading to a 1.6% reduction in the 2026 profit forecast to RMB10.2 billion.</p>

- CICC reported that Tencent Music Entertainment Group (TME-SW) recorded a revenue of RMB 7.895 billion in Q1 2026, reflecting a 7% year-on-year increase.  
- The report notes that the State Administration for Market Regulation approved Tencent's acquisition of a stake in Ximalaya, with conditions that could impact future revenue and expenses, leading CICC to lower its 2026 net profit forecast by 1.6%.  
- CICC maintained an Outperform rating on TME-SW but reduced its target price for the Hong Kong-listed shares by 17.8% to HKD 55.5, reflecting market concerns about competition.

CICC Cuts TME-SW TP to HKD55.5; 1Q Profit In Line