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Nomura Securities analysts Rachel Guo and Jialong Shi pointed out in their research report that despite the profit margin guidance given by management being lower than expected, Tencent Music (TME.N) is still expected to maintain a resilient profit margin in 2026 thanks to continued optimization of operational leverage. Management expects fourth-quarter revenue to increase by 13% year-on-year, in line with market consensus, and predicts that revenue growth will continue to be 13% in 2026. However, with the revenue structure tilting towards low-margin non-subscription services, profit margins may slightly decline. Analysts believe that this conservative profit margin outlook reflects the company's cautious attitude towards market expectations, a strategy that has helped its performance consistently exceed expectations in recent quarters. Nomura maintains a "buy" rating on the stock with a target price of $30, with its American Depositary Receipts (ADR) closing at $19.01 in the latest trading session.