Tencent Music's Margin Outlook Likely to Remain Resilient

Dow Jones
08/14

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.

 

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