Equity Research Analyst - Long-Short

Raj S, CA, CFA

I am Raj - CA and CFA. A Buy-side analyst.

I cover BFSI, Autos, Tech, AI and several other sectors across geographies.
   
I am a CA and CFA, with 10+ years experience in fundamental equity research across buy-side and sell-side and across geographies.

My research process is fundamental driven, focused on the catalysts which would have a direct impact on a stocks performance and market valuation. These days, I look for names which have a clear mis-pricing evident in its valuation vs. fundamental business moats/ growth/ NAV. Fortunately, there are always such stories around. More importantly, the timeline of when the mis-pricing is resolved and what triggers this resolution is what interests me.

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

TME (TME US) - 3Q25 Review: Investing to Expand Music Product Offerings

Equity Bottom-Up

<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