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 reported 4Q25 results: total revenue grew by 16% YoY to RMB8.64bn, 3% ahead of Bloomberg consensus estimate mainly due to the stronger-thanexpected performance of non-subscription music businesses (+41% YoY); nonIFRS net income increased by 9% YoY to RMB2.49bn, in line with consensus estimate.</li><li>FY25 total revenue/non-IFRS net income was up by 16%/25% YoY to RMB32.90bn/9.59bn. Looking into FY26E, we forecast total revenue to grow by 10% YoY, with music subscription/non-subscription revenue up by 6%/25% YoY respectively.</li><li>Management expects music subscription revenue to face shortterm pressure due to the intensive competition, and the company will step up content and marketing investment to strengthen its competitive moat. </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 4Q25 results: total revenue grew by 16% YoY to RMB8.64bn, 3% ahead of Bloomberg consensus estimate mainly due to the stronger-thanexpected performance of non-subscription music businesses (+41% YoY); nonIFRS net income increased by 9% YoY to RMB2.49bn, in line with consensus estimate.FY25 total revenue/non-IFRS net income was up by 16%/25% YoY to RMB32.90bn/9.59bn. Looking into FY26E, we forecast total revenue to grow by 10% YoY, with music subscription/non-subscription revenue up by 6%/25% YoY respectively.Management expects music subscription revenue to face shortterm pressure due to the intensive competition, and the company will step up content and marketing investment to strengthen its competitive moat. 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) - 4Q25 Review: Stepping up Investment to Drive Long-Term Sustainable Growth

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.

<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

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 strong third-quarter results in 2025, driven by significant growth in its online music business.</li><li>Total revenues grew by 21% year-over-year to RMB 8.5 billion, with online music revenues increasing by over 27% to RMB 7 billion.</li><li>The growth in music subscription revenues was notable, with a 70% year-on-year increase to RMB 4.5 billion, propelled by a steady rise in paying users and enhancements in ARPPU, which reached RMB 11.9 compared to RMB 10.8 from the previous year.</li></ul>

Tencent Music Entertainment Group reported strong third-quarter results in 2025, driven by significant growth in its online music business.Total revenues grew by 21% year-over-year to RMB 8.5 billion, with online music revenues increasing by over 27% to RMB 7 billion.The growth in music subscription revenues was notable, with a 70% year-on-year increase to RMB 4.5 billion, propelled by a steady rise in paying users and enhancements in ARPPU, which reached RMB 11.9 compared to RMB 10.8 from the previous year.

Tencent Music Entertainment Group: How Live Events & Fan Economies Are Reshaping Growth!

<ul><li>TME announced 3Q25 results: total revenue increased by 21% YoY to RMB8.46bn, and non-IFRS net income was up by 33% YoY to RMB2.41bn, 3% and 4% ahead of Bloomberg consensus respectively, mainly thanks to the better-than-expected revenue growth of non-subscription music businesses (+51% YoY) like ads and offline performances.</li><li>We expect total revenue growth will decelerate to +12% YoY in 4Q25E, largely in line with consensus, mainly due to the normalisation of revenue from offline performances.</li><li>For FY26E, the company will further step up investment in content and new monetization opportunities such as offline performance and artist-related merchandise, which may drive sustainable revenue growth but impact short-term margins, in our view. </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 3Q25 results: total revenue increased by 21% YoY to RMB8.46bn, and non-IFRS net income was up by 33% YoY to RMB2.41bn, 3% and 4% ahead of Bloomberg consensus respectively, mainly thanks to the better-than-expected revenue growth of non-subscription music businesses (+51% YoY) like ads and offline performances.We expect total revenue growth will decelerate to +12% YoY in 4Q25E, largely in line with consensus, mainly due to the normalisation of revenue from offline performances.For FY26E, the company will further step up investment in content and new monetization opportunities such as offline performance and artist-related merchandise, which may drive sustainable revenue growth but impact short-term margins, in our view. 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) - 3Q25 Review: Investing to Expand Music Product Offerings

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) - 4Q25 Review: Stepping up Investment to Drive Long-Term Sustainable Growth

TME reported 4Q25 results: total revenue grew by 16% YoY to RMB8.64bn, 3% ahead of Bloomberg consensus estimate mainly due to the stronger-than...

CMB International

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