Tencent Music's Margin Outlook Likely to Remain Resilient
Dow Jones08-14 16:41
0841 GMT - Tencent Music Entertainment's margin outlook remains resilient despite higher investment for recently acquired audio platform Ximalaya, says UOB Kay Hian's Julia Pan in a note. The platform adds scale and broadens Tencent Music's audio ecosystem. Contributions from Ximalaya should boost gross margins slightly, she says. However, she also flagged that the Chinese online-music company is likely to spend more on marketing for its new platform, which could drive up sales and operating expenses and slightly weigh on net profit margin for 2026. UOB KH raises its target price for Tencent Music to 53.00 Hong Kong dollars from HK$50.00 and retains a buy rating. Shares closed at HK$33.60.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments