Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Bottom-Up

<ul>
<li>Real singer fans is still supporting TME, especially in offline performance.</li>
<li>The operating margin improved due to channel fee cut and headcount freeze.</li>
<li>The P/E band suggests an upside of 38% for the year end 2026.</li>
</ul>


Real singer fans is still supporting TME, especially in offline performance.
The operating margin improved due to channel fee cut and headcount freeze.
The P/E band suggests an upside of 38% for the year end 2026.


Tencent Music (TME): 1Q26 Growth Slows, But March Plunge Is Overdone, 38% Upside

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Equity Capital Markets

Suzhou Dongshan Precision A / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/suzhou-dongshan-precision-a" target="_blank" data-smartkarma-citation="entities:8796:1" rel="noopener">Suzhou Dongshan Precision A (002384 CH)</a> (SDPM), a global PCB and other component provider, aims to raise up to US$3bn in its H-share listing.</li>
<li>SDPM was the third largest PCB supplier and seventh largest global transceiver supplier by revenue in 2025, according to CIC.</li>
<li>We have looked at the company’s past performance in our previous note. In this note, we talk about the recent updates and likely A/H premium.</li>
</ul>



Suzhou Dongshan Precision A (002384 CH) (SDPM), a global PCB and other component provider, aims to raise up to US$3bn in its H-share listing.
SDPM was the third largest PCB supplier and seventh largest global transceiver supplier by revenue in 2025, according to CIC.
We have looked at the company’s past performance in our previous note. In this note, we talk about the recent updates and likely A/H premium.


Aequitas: Suzhou Dongshan Precision A/H Listing - PHIP Updates and Thoughts on A/H Premium

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Tencent Music Entertainment Group reported solid financial results for the full year and fourth quarter of 2025, reflecting growth across its core music subscription business and expanding non-subscription offerings.</li><li>Total revenues for 2025 reached RMB 32.9 billion, representing a 16% year-over-year increase, with online music services contributing RMB 26.7 billion, up 23% annually.</li><li>Music subscription revenues rose 16% to RMB 17.7 billion, supported by a multi-tier membership system comprising standard, SVIP, and an ad-supported membership launched in late 2025.</li></ul>

Tencent Music Entertainment Group reported solid financial results for the full year and fourth quarter of 2025, reflecting growth across its core music subscription business and expanding non-subscription offerings.Total revenues for 2025 reached RMB 32.9 billion, representing a 16% year-over-year increase, with online music services contributing RMB 26.7 billion, up 23% annually.Music subscription revenues rose 16% to RMB 17.7 billion, supported by a multi-tier membership system comprising standard, SVIP, and an ad-supported membership launched in late 2025.

Tencent Music Entertainment Group's RMB 32.9 Billion Revenue Base Faces AI Driven Competition

<ul>
<li>TME continued to raise subscription prices and the paying user base continued to expand.</li>
<li>We believe artificial intelligence will not impact TME’s business, as the musician base was large enough before AI.</li>
<li>We also believe TME has an upside of 60% and a price target of $USD24 for the year end 2026.</li>
</ul>


TME continued to raise subscription prices and the paying user base continued to expand.
We believe artificial intelligence will not impact TME’s business, as the musician base was large enough before AI.
We also believe TME has an upside of 60% and a price target of $USD24 for the year end 2026.


Tencent Music (TME): 4Q25, AI Far From Killing Music, 60% Upside

Equity Research Analyst - Long-Short

Raj S, CA, CFA

<ul>
<li>TME’s 35% correction since 4Q25 reflects Soda competition fears, proving benign, and 2026E investment-led margin pressure, not fundamentals; core monetisation and platform moats remain intact.</li>
<li>Ximalaya acquisition, expected to complete in 1H26, expands TME into long-form audio and should add ~10–20% to 2027–28E EPS through platform synergies; live concerts add upside.</li>
<li>At ~14–15x 2027E P/E, TME prices no margin recovery, no Ximalaya upside, and no live-concert optionality, implying asymmetric returns; we see ~70–100% medium-term upside as earnings compound.</li>
</ul>


TME’s 35% correction since 4Q25 reflects Soda competition fears, proving benign, and 2026E investment-led margin pressure, not fundamentals; core monetisation and platform moats remain intact.
Ximalaya acquisition, expected to complete in 1H26, expands TME into long-form audio and should add ~10–20% to 2027–28E EPS through platform synergies; live concerts add upside.
At ~14–15x 2027E P/E, TME prices no margin recovery, no Ximalaya upside, and no live-concert optionality, implying asymmetric returns; we see ~70–100% medium-term upside as earnings compound.


Tencent Music (TME US): Long-Term Moats and Underappreciated Catalysts at Great Valuation

China

Tencent Music Entertainment operates an online music entertainment platform in China. The Company offers platform that comprises of online music, recording, music-centric live streaming enabling users to discover, listen, sing, watch, perform, and socialize music.

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Tencent Music (TME US)

Tencent Music (TME): 1Q26 Growth Slows, But March Plunge Is Overdone, 38% Upside

Real-singer fans still support TME, especially offline performance. The operating margin improved due to channel fee cut and headcount freeze.

Ming Lu

Aequitas: Suzhou Dongshan Precision A/H Listing - PHIP Updates and Thoughts on A/H Premium

Suzhou Dongshan Precision (002384 CH), a global PCB and other component provider, aims to raise up to US$3bn in its H-share listing. In this note,...

Sumeet Singh

Tencent Music Entertainment Group's RMB 32.9 Billion Revenue Base Faces AI Driven Competition

Tencent Music Entertainment Group reported solid financial results for the full year and fourth quarter of 2025, reflecting growth across its core...

Baptista Research

Tencent Music (TME): 4Q25, AI Far From Killing Music, 60% Upside

TME continued to raise subscription prices and the paying user base continued to expand. We believe AI will not impact TME’s business, as the...

Ming Lu