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TME 
Tencent Music Entertainment Group (TME)
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Upturn Advisory Summary
01/09/2026: TME (2-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Number of Analysts
32 Analysts rated it
Highly popular stock, broad analyst coverage, trusted insights, strong investor interest.
1 Year Target Price $26.83
1 Year Target Price $26.83
| 20 | Strong Buy |
| 10 | Buy |
| 2 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 74.12% | Avg. Invested days 53 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  4.0 |
| Profits based on simulation | Last Close 01/09/2026 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 29.22B USD | Price to earnings Ratio 17.53 | 1Y Target Price 26.83 |
Price to earnings Ratio 17.53 | 1Y Target Price 26.83 | ||
Volume (30-day avg) 32 | Beta 0.44 | 52 Weeks Range 10.26 - 26.70 | Updated Date 01/10/2026 |
52 Weeks Range 10.26 - 26.70 | Updated Date 01/10/2026 | ||
Dividends yield (FY) 1.04% | Basic EPS (TTM) 0.99 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 34.08% | Operating Margin (TTM) 29.13% |
Management Effectiveness
Return on Assets (TTM) 7.84% | Return on Equity (TTM) 14.79% |
Valuation
Trailing PE 17.53 | Forward PE 17.7 | Enterprise Value 23526020307 | Price to Sales(TTM) 0.92 |
Enterprise Value 23526020307 | Price to Sales(TTM) 0.92 | ||
Enterprise Value to Revenue 5.19 | Enterprise Value to EBITDA 12.62 | Shares Outstanding 708442998 | Shares Floating 1115311923 |
Shares Outstanding 708442998 | Shares Floating 1115311923 | ||
Percent Insiders - | Percent Institutions 62.98 |
Upturn AI SWOT
Tencent Music Entertainment Group
Company Overview
History and Background
Tencent Music Entertainment Group (TME) was established in 2016 as a subsidiary of Tencent Holdings, consolidating Tencent's music entertainment businesses. It officially launched its streaming service in 2017. TME became a publicly traded company on the New York Stock Exchange (NYSE) under the ticker symbol TME in December 2018. Key milestones include strategic partnerships, content acquisitions, and the expansion into social entertainment features.
Core Business Areas
- Online Music: This segment focuses on its music streaming platforms, offering a vast library of songs, personalized recommendations, and artist-fan interaction features. Revenue is primarily generated through subscriptions, digital music sales, and advertising.
- Social Entertainment: This segment includes live music performances, online karaoke services, and other interactive entertainment experiences where users can connect with artists and each other. Revenue is generated through virtual gifts, tipping, and premium features.
Leadership and Structure
TME operates as an independent entity under Tencent Holdings, though it maintains strong ties with its parent company. The leadership team typically includes a CEO, CFO, and heads of various business units, with a board of directors overseeing strategic direction. Specific leadership roles and their tenure can vary.
Top Products and Market Share
Key Offerings
- QQ Music: TME's flagship music streaming service, offering a comprehensive music library, high-fidelity audio, and extensive features for music discovery and social interaction. As of recent reports, QQ Music is a dominant player in China's music streaming market, often cited as having the largest user base and significant market share. Competitors include NetEase Cloud Music, Kugou Music, and Kuwo Music.
- Kugou Music: Another major music streaming platform under TME, known for its extensive song catalog and strong presence in younger demographics. It is a significant contributor to TME's overall music segment. Competitors include QQ Music, NetEase Cloud Music, and others.
- Kuwo Music: TME's third primary music streaming service, often catering to a slightly different user base or preference for certain genres. It complements QQ Music and Kugou Music in TME's portfolio. Competitors include QQ Music, Kugou Music, and NetEase Cloud Music.
- WeSing (u5168u6c11Ku6b4c): TME's popular online karaoke and social entertainment platform, allowing users to sing, record, and share music. It's a key driver of the social entertainment segment's revenue through virtual gifts and other in-app purchases. Competitors include various smaller karaoke apps and broader social media platforms with integrated music features.
Market Dynamics
Industry Overview
The music entertainment industry in China is characterized by rapid digital adoption, a growing middle class, and an increasing demand for digital content and interactive entertainment. Key trends include the shift from free to paid music services, the rise of short-form video integration with music, and the importance of artist-fan engagement. Competition is intense, with both domestic and international players vying for market share.
Positioning
TME holds a dominant position in China's online music and social entertainment markets, largely due to its integration with Tencent's vast ecosystem, strong brand recognition, and extensive content library. Its competitive advantages include a large and loyal user base, sophisticated recommendation algorithms, and successful monetization strategies in both music streaming and social entertainment.
Total Addressable Market (TAM)
The TAM for China's digital music market is significant and projected to continue growing, driven by increasing internet penetration and rising disposable incomes. The social entertainment market also presents substantial growth potential. TME is well-positioned to capture a large portion of this TAM due to its established platforms and extensive user network.
Upturn SWOT Analysis
Strengths
- Dominant market share in China's online music and social entertainment sectors.
- Strong backing and integration with Tencent's extensive ecosystem (e.g., WeChat, QQ).
- Diverse revenue streams from both online music subscriptions/sales and social entertainment.
- Vast content library and exclusive licensing agreements with many artists and labels.
- Sophisticated recommendation algorithms and user engagement features.
Weaknesses
- Reliance on the Chinese market, exposing it to regulatory risks and economic slowdowns.
- Intense competition from established players like NetEase.
- Potential for rising content acquisition costs.
- Challenges in further monetizing a user base accustomed to free content.
Opportunities
- Expansion into new forms of entertainment (e.g., podcasts, audiobooks, live streaming concerts).
- Further development of AI-driven personalized music experiences.
- International market expansion (though challenging due to existing global players).
- Leveraging short-form video trends to promote music and artists.
- Growth in premium subscription services and higher-margin social entertainment offerings.
Threats
- Increasing regulatory scrutiny and potential government intervention in the tech and entertainment sectors.
- Intensifying competition and price wars.
- Piracy and copyright infringement.
- Changes in user preferences and the emergence of new entertainment platforms.
- Macroeconomic downturns impacting consumer spending on entertainment.
Competitors and Market Share
Key Competitors
- NetEase Cloud Music (NTES)
- Apple Music (AAPL)
- Spotify (SPOT)
Competitive Landscape
TME's primary advantage is its deep integration with Tencent's ecosystem and its dominant position in China. However, it faces strong competition from NetEase, which has its own dedicated user base and content strategy. Global players like Apple Music and Spotify, while having a smaller direct market share in China compared to local giants, represent significant competitive forces in terms of global music rights and artist relations.
Growth Trajectory and Initiatives
Historical Growth: TME has demonstrated significant historical growth, largely driven by the expansion of its user base and the successful monetization of its services. The company has benefited from the burgeoning digital music market in China and its ability to innovate within the social entertainment space.
Future Projections: Analyst projections for TME's future growth often focus on continued user base expansion, the increasing penetration of paid subscriptions, and the monetization of its social entertainment offerings. Growth in international markets and new content verticals are also key areas for future expansion, though subject to various market dynamics.
Recent Initiatives: Recent initiatives have likely included strategic partnerships with global music labels, investments in new music technology, efforts to enhance user engagement on its platforms, and exploration of emerging revenue streams such as NFTs and metaverse-related ventures.
Summary
Tencent Music Entertainment Group is a dominant force in China's digital music and social entertainment landscape, leveraging its strong ties with Tencent and a robust platform. Its key strengths lie in its vast user base and diverse revenue streams. However, it must navigate intense competition, potential regulatory challenges, and the evolving demands of the digital entertainment market to sustain its growth trajectory.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Company financial reports (e.g., 10-K, 10-Q filings)
- Investor relations websites
- Reputable financial news outlets and analysis platforms
- Market research reports on the Chinese digital entertainment industry
Disclaimers:
This analysis is based on publicly available information and is intended for informational purposes only. It does not constitute financial advice. Market share data and financial figures are estimates and may vary based on the source and reporting period. Investors should conduct their own due diligence before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Tencent Music Entertainment Group
Exchange NYSE | Headquaters - | ||
IPO Launch date 2018-12-12 | CEO & Director Mr. Zhu Liang | ||
Sector Communication Services | Industry Internet Content & Information | Full time employees 5353 | Website https://www.tencentmusic.com |
Full time employees 5353 | Website https://www.tencentmusic.com | ||
Tencent Music Entertainment Group operates online music entertainment platforms that provides music streaming, online karaoke, and live streaming services in the People's Republic of China. It offers QQ Music, Kugou Music, and Kuwo Music that enable users to discover, enjoy, and share music in personalized ways; long-form audio content, including audiobooks, podcasts and talk shows, as well as music-oriented video content comprising music videos, live performances, and short videos; and WeSing, which enables users to sing along from its library of karaoke songs and share their performances in audio or video formats with friends. The company also delivers music-centric live streaming services primarily through the Live Streaming tab on QQ Music, Kugou Music, Kuwo Music, WeSing, Kugou Live, and Kuwo Live that provides an interactive online stage for performers and users to showcase their talent and engage with audience base; and Lazy Audio, an audio platform. In addition, it sells artist-related merchandise, such as branded apparel, posters and art prints, and accessories; other music services, such as content licensing, sales of digital albums, sales of customized artist-related merchandises, live performances and concerts, and artist management services; and music subscriptions, as well as offers advertising services across its social entertainment platforms. The company is headquartered in Shenzhen, China. Tencent Music Entertainment Group is a subsidiary of Tencent Holdings Limited.
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