CICC International: Raises Tencent Music H shares target price to 74 Hong Kong dollars, maintains "buy" rating.

CICC released a research report, basically maintaining the adjusted net profit forecast for Tencent Music for the next two years, and respectively raising its target prices for Hong Kong stocks and US stocks to 74 Hong Kong dollars and 19 US dollars, while maintaining a "buy" rating. The bank expects fluctuations in net member growth in future quarters due to operational pace, but the visibility of the long-term target of 150 million members and 15 yuan average monthly ARPPU is high. Tencent Music acquired approximately 2.21 million shares of SM Entertainment, expanding cooperation beyond copyright to jointly create Chinese idol groups, develop IP business, and expand offline performance cooperation. The bank maintains a steady growth forecast for Tencent Music's music subscription revenue, with an expected 16% increase this year compared to last year, including a 6% increase in members and a 10% increase in average monthly ARPPU, continuing to benefit from reduced promotions and an increase in SVIP share; in addition, non-subscription revenue is expected to grow by 18% year-on-year.