TME-SW (01698) surged more than 5%, trading at HK$39.36 as of press time, up 5.3% with a turnover of HK$44.91 million. The gains come ahead of the company's second-quarter earnings announcement scheduled for after the Hong Kong market close today, marking the first quarterly report following Tencent Music's completion of the Ximalaya acquisition.
Orient Securities previously noted that the formal closing of the Ximalaya deal is expected to bring positive synergies across content, traffic, and membership matrix. Additionally, the integration of audio sources from QQ Music via WeChat Channels, which began in April, is anticipated to gradually ramp up contributions. Citic Securities believes that the acquisition of Ximalaya by Tencent Music could add incremental revenue and profit growth post-closing.
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