MB-TMEG@EC2603A(18197.HK)

Tencent's "Yuanbao" public beta exposed, suspected to integrate QQ Music and Tencent Video resources

Tencent's "Yuanbao Pai" has entered the countdown to public testing, suspected to integrate resources from QQ Music and Tencent Video, allowing users to enjoy membership content for free. The public test version adds "Listen to Music Together" and "Watch Videos Together" features, supporting direct access to membership content from QQ Music and Tencent Video within Yuanbao Pai. The specific launch date has not yet been announced

Morgan Stanley expects a brighter outlook for Chinese tech stocks this year, with Tencent as the industry's top pick

Morgan Stanley released a outlook on Chinese tech stocks, believing that the development prospects of AI in China are bright, mainly driven by supply and demand. It recommends Tencent, Alibaba, Pinduoduo, and Tencent Music as overweight, while JD.com, Bilibili, Kuaishou, and Baidu as underweight. The overseas market has become a new growth engine, with overseas revenue expected to account for over 10% by 2025. However, caution is needed regarding weak domestic consumption, intense competition, and regulatory risks

In "The Big Banks," Citigroup: Tencent Music provides an entry opportunity after the pullback, maintaining a target price of 92.1 yuan

The Lyon Research report points out that Tencent Music's stock price has performed poorly year-to-date, mainly due to market concerns over intensified competition and antitrust activities. The stock is currently trading at a 16.8 times adjusted forecast price-to-earnings ratio for 2026, lower than the industry average of 18.5 times. Considering its sustainable subscription model, the firm believes the market has over-sold, with the stock price having corrected by 38%, providing a good entry opportunity at the current risk-reward level. It maintains an "Outperform" rating on Tencent Music, with a target price of HKD 92.1

Top 5 HK Stock Gainers/Losers (>100B) (1.16)

MINIMAX-WP(00100) rose 22.35%, with a trading turnover 1.1 Billion HKD, and a year-to-date rose 165.5%. GIGADEVICE(03986) rose 16.74%, with a trading turnover 716.0 Million HKD, and a year-to-date rose 67.9%. POP MART(09992) fell 5.6%, with a trading turnover 6.0 Billion HKD, and a year-to-date fell 4.8%. ALI HEALTH(00241) fell 5.16%, with a trading turnover 2.4 Billion HKD, and a year-to-date rose 34.7%.

The Nasdaq Golden Dragon China Index preliminarily closed down 0.6%. Among popular Chinese concept stocks, Tencent Music fell 4.9%, Kingsoft Cloud fell 4.6%, and Zai Lab fell 4.1%. In ETFs, KWEB fell 1.1%, CQQQ rose 0.22%, and ASHR rose 0.8%