Market Insight | Tencent Music-SW surges over 6% again, Morgan Stanley expects its second-quarter performance and third-quarter guidance to slightly exceed market expectations
Tencent Music-SW rose by over 6% again. As of the time of publication, it increased by 6.26% to HKD 52.6, with a turnover of HKD 2.9374 million. On the news front, Morgan Stanley released a technical research report, predicting that Tencent Music's US stock price will rise in the next 60 days, with a probability of over 80%. The report stated that Tencent Music's recent stock price adjustment along with the overall market has made its short-term valuation more attractive. Morgan Stanley believes that Tencent Music's fundamental factors remain robust and it is the stock least affected by the weak macro environment and competition within its coverage universe in China. The report mentioned that Tencent Music's valuation is equivalent to a forecasted P/E ratio of less than 15 times in 2025, with a forecasted adjusted net profit of RMB 9.5 billion, representing a year-on-year growth of over 25%. It is believed that driven by subscribers, advertising, other music revenue, and profit margins, Tencent Music still has room for growth. At the same time, it is expected that the upcoming second-quarter performance and third-quarter guidance of Tencent Music will slightly exceed market expectations
According to the information from Zhitong Finance APP, Tencent Music (01698) surged over 6% again. As of the time of publication, it rose by 6.26% to HKD 52.6, with a turnover of HKD 2.9374 million.
On the news front, Morgan Stanley released a technical research report, predicting that the stock price of Tencent Music in the US will rise in the next 60 days, with a probability of over 80%. The report stated that Tencent Music's recent stock price adjustment along with the overall market has made its short-term valuation more attractive. Morgan Stanley believes that Tencent Music's fundamental factors remain robust and it is the stock least affected by the weak macro environment and competition within their coverage.
The report mentioned that Tencent Music's valuation is equivalent to a forecasted P/E ratio of less than 15 times for 2025, with an estimated adjusted net profit of over 9.5 billion RMB, a year-on-year growth of over 25%. It is believed that Tencent Music still has room for growth driven by subscribers, advertising, other music revenue, and profit margins. At the same time, it is expected that the upcoming second-quarter performance and third-quarter guidance of Tencent Music will slightly exceed market expectations