Guotai Junan Securities: Maintains Tencent Music's SW "Buy" Rating with a fair value of HKD 96.

Guotai Junan Securities released a research report stating that it maintains a "buy" rating for Tencent Music Entertainment Group. The company is expected to achieve revenue of 32.76/37.08/41.58 billion yuan for the years 2025-2027, with adjusted net profits of 9.68/10.89/12.16 billion yuan. The company is given a 25x PE ratio for 2026, with a corresponding fair value of 96.0 Hong Kong dollars per share. In Q3 of 2025, the company achieved revenue of 8.46 billion yuan, an increase of 20.6% year-on-year. The gross profit margin was 43.5%, up by 0.9 percentage points. Operating profit was 2.71 billion yuan, an increase of 26.4% year-on-year; operating profit margin was 32.0%, up by 1.5 percentage points. Adjusted net profit was 2.41 billion yuan, an increase of 32.6% year-on-year; adjusted net profit margin was 28.4%, up by 2.6 percentage points.