External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>TME is making steady progress in online music paying user growth: we expect 4Q23 total revenue to decline by 10% YoY to RMB6.7bn, but non-IFRS net income to grow by 5% YoY to RMB1.5bn, mainly due to continuous improvement in online music GPM and the effective control on opex.</li><li>Despite macro uncertainty, we expect TME’s online music business to maintain solid growth in 4Q23 (+36% in 4Q23E based on our estimate), supported by the steady growth of both paid users and ARPPU.</li><li>In our view, TME’s current valuation of 16x FY24E Non-IFRS PE remains attractive given its resilience against macro uncertainty, unparalleled leadership in online music sector and solid earnings growth outlook (FY23-25E CAGR of 15%). </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

TME is making steady progress in online music paying user growth: we expect 4Q23 total revenue to decline by 10% YoY to RMB6.7bn, but non-IFRS net income to grow by 5% YoY to RMB1.5bn, mainly due to continuous improvement in online music GPM and the effective control on opex.Despite macro uncertainty, we expect TME’s online music business to maintain solid growth in 4Q23 (+36% in 4Q23E based on our estimate), supported by the steady growth of both paid users and ARPPU.In our view, TME’s current valuation of 16x FY24E Non-IFRS PE remains attractive given its resilience against macro uncertainty, unparalleled leadership in online music sector and solid earnings growth outlook (FY23-25E CAGR of 15%). Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

TME (TME US) - Online Music Business Maintains Solid Growth Amid Macro Uncertainty

<ul><li>TME reported in-line 3Q23 results on 14 Nov: total revenue declined by 11% YoY and 10% QoQ to RMB6.6bn mainly on soft social entertainment business, versus consensus/our estimate of RMB6.4/6.3bn; non-IFRS net income was up 2% YoY to RMB1.41bn, in line with consensus/our estimate of RMB1.42/1.37bn.</li><li>Core music subscription revenue growth further accelerated to +42% YoY in 3Q23 (vs. 1Q23/2Q23 +30/37% YoY &amp; consensus +37% YoY), driven by solid growth of both paying users and ARPPU.</li><li>Looking ahead, we forecast total revenue to decline by 10% YoY to RMB6.7bn in 4Q23E, due to the persisting impact of social entertainment business adjustment. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

TME reported in-line 3Q23 results on 14 Nov: total revenue declined by 11% YoY and 10% QoQ to RMB6.6bn mainly on soft social entertainment business, versus consensus/our estimate of RMB6.4/6.3bn; non-IFRS net income was up 2% YoY to RMB1.41bn, in line with consensus/our estimate of RMB1.42/1.37bn.Core music subscription revenue growth further accelerated to +42% YoY in 3Q23 (vs. 1Q23/2Q23 +30/37% YoY &amp; consensus +37% YoY), driven by solid growth of both paying users and ARPPU.Looking ahead, we forecast total revenue to decline by 10% YoY to RMB6.7bn in 4Q23E, due to the persisting impact of social entertainment business adjustment. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

TME (TME US) – Inline 3Q23 results; strong music subscription revenue growth

<ul><li>TME announced 2Q23 financial results on 15 Aug. Total revenue grew by 5.5% YoY and 4.0% QoQ to RMB7.3bn in 2Q23, in line with CMBI/consensus estimate of RMB7.2/7.3bn.</li><li>Non-IFRS net income was up 48.6% YoY to RMB1.5bn in 2Q23, also in line with CMBI/consensus estimate.</li><li>Its online music revenue growth was ahead of consensus expectations by 8% due to solid music subscription growth and ad business recovery; but its social entertainment revenue was 12% below consensus due to TME’s risk control measures implemented in 2Q23. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

TME announced 2Q23 financial results on 15 Aug. Total revenue grew by 5.5% YoY and 4.0% QoQ to RMB7.3bn in 2Q23, in line with CMBI/consensus estimate of RMB7.2/7.3bn.Non-IFRS net income was up 48.6% YoY to RMB1.5bn in 2Q23, also in line with CMBI/consensus estimate.Its online music revenue growth was ahead of consensus expectations by 8% due to solid music subscription growth and ad business recovery; but its social entertainment revenue was 12% below consensus due to TME’s risk control measures implemented in 2Q23. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

TME (TME US) – Improving profitability despite pressure on social entertainment business

<ul><li>TME will report its 2Q23 results on 15 August.</li><li>We expect 2Q23 total revenue to grow 4% YoY to RMB7.2bn (3% below consensus), mainly due to enhanced live streaming procedures started in late 2Q and its subsequent impact to TME’s social entertainment revenue.</li><li>But online music business continues to remain on track of progressive growth, driven by the robust subscription business and recovery of ads business. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

TME will report its 2Q23 results on 15 August.We expect 2Q23 total revenue to grow 4% YoY to RMB7.2bn (3% below consensus), mainly due to enhanced live streaming procedures started in late 2Q and its subsequent impact to TME’s social entertainment revenue.But online music business continues to remain on track of progressive growth, driven by the robust subscription business and recovery of ads business. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

TME (TME US) – Solid Earnings Growth Despite Social Entertainment Business Adjustment

<ul><li>TME reported 1Q23 results on 16 May. Total revenue increased by 5% YoY to RMB7.0bn in 1Q23 and was in line with consensus/CMBI estimate.</li><li>Non-IFRS net income grew by 57% YoY to RMB1.4bn in 1Q23, beating consensus/CMBI estimate by 11/9%, mainly due to strong growth of core music business (+34% YoY) and effective expense control.</li><li>Music business delivered a record-high net addition of 5.9mn subscribers in 1Q23, with 11% YoY APPRU growth, which demonstrates TME’s successful execution of its quality growth strategy. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

TME reported 1Q23 results on 16 May. Total revenue increased by 5% YoY to RMB7.0bn in 1Q23 and was in line with consensus/CMBI estimate.Non-IFRS net income grew by 57% YoY to RMB1.4bn in 1Q23, beating consensus/CMBI estimate by 11/9%, mainly due to strong growth of core music business (+34% YoY) and effective expense control.Music business delivered a record-high net addition of 5.9mn subscribers in 1Q23, with 11% YoY APPRU growth, which demonstrates TME’s successful execution of its quality growth strategy. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

TME (TME US) – Strong core music business supports 1Q23 earnings beat

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)

TME (TME US) - Online Music Business Maintains Solid Growth Amid Macro Uncertainty

TME is making steady progress in online music paying user growth: we expect 4Q23 total revenue to decline by 10% YoY to RMB6.7bn, but non-IFRS net...

CMB International

TME (TME US) – Inline 3Q23 results; strong music subscription revenue growth

Looking ahead, we forecast total revenue to decline by 10% YoY to RMB6.7bn in 4Q23E, due to the persisting impact of social entertainment business...

CMB International

TME (TME US) – Strong core music business supports 1Q23 earnings beat

TME reported 1Q23 results on 16 May. Total revenue increased by 5% YoY to RMB7.0bn in 1Q23 and was in line with consensus/CMBI estimate.

CMB International

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TME (TME US) - Online Music Business Maintains Solid Growth Amid Macro Uncertainty

TME is making steady progress in online music paying user growth: we expect 4Q23 total revenue to decline by 10% YoY to RMB6.7bn, but non-IFRS net...

CMB International

TME (TME US) – Inline 3Q23 results; strong music subscription revenue growth

Looking ahead, we forecast total revenue to decline by 10% YoY to RMB6.7bn in 4Q23E, due to the persisting impact of social entertainment business...

CMB International

TME (TME US) – Improving profitability despite pressure on social entertainment business

TME announced 2Q23 financial results on 15 Aug. Total revenue grew by 5.5% YoY and 4.0% QoQ to RMB7.3bn in 2Q23, in line with CMBI/consensus...

CMB International

TME (TME US) – Solid Earnings Growth Despite Social Entertainment Business Adjustment

We expect 2Q23 total revenue to grow 4% YoY to RMB7.2bn (3% below consensus), mainly due to enhanced live streaming procedures started in late 2Q

CMB International

TME (TME US) – Strong core music business supports 1Q23 earnings beat

TME reported 1Q23 results on 16 May. Total revenue increased by 5% YoY to RMB7.0bn in 1Q23 and was in line with consensus/CMBI estimate.

CMB International