China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

[Tencent Music (TME US) Target Price Change]: Cut TP as Offline Music Activities Begin to Thrive

[Tencent Music (TME US, SELL, TP US$6) Preview]: Competition Is Still a Concern, Maintain SELL

[Tencent Music (TME US, SELL, TP US$5.7) TP Change]: Competition Remains the Biggest Downward Factor

TME (TME US) – Expect a year of mild recovery in FY23

TME: Social Entertainment Losing Its Importance with Top Line Growth Keep Declining

Tencent Music Entertainment(TME.US) 4Q22 Preview: Raise TP for Gradual but Slow Recovery

China/Asia TMT

Shawn Yang

Equity Bottom-Up

<ul>
<li>TME reported 4Q22 results with topline beat our est. by 3.6% and bottom line beat our est. by 2.4%. </li>
<li>While the growth of online music gradually stabilizes without large catalyst in near future, its social entertainment segment continues to decline due to competition pressure.</li>
<li>Maintain SELL and cut TP to US$ 6.2 to reflect limited top line growth and possible cost rebound. Our TP implies 13.6X PE in 2023.</li>
</ul>


TME reported 4Q22 results with topline beat our est. by 3.6% and bottom line beat our est. by 2.4%. 
While the growth of online music gradually stabilizes without large catalyst in near future, its social entertainment segment continues to decline due to competition pressure.
Maintain SELL and cut TP to US$ 6.2 to reflect limited top line growth and possible cost rebound. Our TP implies 13.6X PE in 2023.


[Tencent Music (TME US) Target Price Change]: Cut TP for Competition Pressure and Cost Rebound