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Tencent Music Entertainment Group (TME)



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Upturn Advisory Summary
08/14/2025: TME (4-star) is a STRONG-BUY. BUY since 68 days. Profits (79.59%). Updated daily EoD!
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 90.87% | Avg. Invested days 50 | Today’s Advisory Strong Buy |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Large-Cap Stock | Market Capitalization 39.58B USD | Price to earnings Ratio 27.74 | 1Y Target Price 26.83 |
Price to earnings Ratio 27.74 | 1Y Target Price 26.83 | ||
Volume (30-day avg) 32 | Beta 0.49 | 52 Weeks Range 9.41 - 26.54 | Updated Date 08/15/2025 |
52 Weeks Range 9.41 - 26.54 | Updated Date 08/15/2025 | ||
Dividends yield (FY) 0.71% | Basic EPS (TTM) 0.92 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2025-08-12 | When - | Estimate 1.42 | Actual 1.55 |
Profitability
Profit Margin 33.83% | Operating Margin (TTM) 32.27% |
Management Effectiveness
Return on Assets (TTM) 7.4% | Return on Equity (TTM) 14.26% |
Valuation
Trailing PE 27.74 | Forward PE 31.65 | Enterprise Value 37840035612 | Price to Sales(TTM) 1.31 |
Enterprise Value 37840035612 | Price to Sales(TTM) 1.31 | ||
Enterprise Value to Revenue 8.98 | Enterprise Value to EBITDA 21.74 | Shares Outstanding 708443008 | Shares Floating 1109966908 |
Shares Outstanding 708443008 | Shares Floating 1109966908 | ||
Percent Insiders - | Percent Institutions 70.86 |
Upturn AI SWOT
Tencent Music Entertainment Group

Company Overview
History and Background
Tencent Music Entertainment Group (TME) was formed in 2016 through the merger of Tencent's QQ Music and China Music Corporation. It was listed on the New York Stock Exchange (NYSE) in 2018. TME has become the leading online music platform in China, offering music streaming, karaoke, and live streaming services.
Core Business Areas
- Online Music Services: Provides music streaming subscriptions, ad-supported listening, and music sales through platforms like QQ Music, Kugou Music, and Kuwo Music.
- Social Entertainment Services: Offers online karaoke, live streaming, and virtual gifting through platforms like WeSing, providing interactive entertainment experiences.
Leadership and Structure
The leadership team consists of key executives overseeing various business units. The organizational structure is designed to support its diverse portfolio of music and entertainment services.
Top Products and Market Share
Key Offerings
- QQ Music: A leading music streaming platform in China, offering a vast library of songs, personalized recommendations, and social features. Competitors include NetEase Cloud Music and Xiami Music. Data unavailable.
- Kugou Music: Another popular music streaming platform known for its extensive catalog and user-friendly interface. Competitors include NetEase Cloud Music and Xiami Music. Data unavailable.
- Kuwo Music: A music streaming platform focusing on lossless audio and immersive listening experiences. Competitors include NetEase Cloud Music and Xiami Music. Data unavailable.
- WeSing: An online karaoke platform allowing users to sing, record, and share their performances. Competitors include Quanmin K Ge and Changba. Data unavailable.
Market Dynamics
Industry Overview
The online music industry is experiencing growth driven by increased internet penetration, rising disposable incomes, and a growing demand for digital entertainment. The Chinese market is highly competitive with increasing regulatory scrutiny.
Positioning
TME holds a dominant position in the Chinese online music market due to its extensive music library, strong user base, and strategic partnerships. However, faces regulatory risk.
Total Addressable Market (TAM)
The TAM for online music entertainment in China is substantial. TME is positioned to capture a significant portion of this market through its diverse offerings.
Upturn SWOT Analysis
Strengths
- Large user base
- Extensive music library
- Strong brand recognition
- Dominant market share
- Strategic partnerships
Weaknesses
- Dependence on licensing agreements
- Exposure to regulatory risks
- Intense competition
- Piracy concerns
- Limited international presence
Opportunities
- Expansion into new entertainment formats
- Diversification of revenue streams
- Strategic alliances with global music companies
- Increased penetration in smaller cities
- Exploitation of AI and personalization
Threats
- Increased competition from rival platforms
- Changes in government regulations
- Evolving consumer preferences
- Economic slowdown
- Content piracy and copyright infringement
Competitors and Market Share
Key Competitors
- SPOT
- AAPL
Competitive Landscape
TME has the advantage of strong local market knowledge in China, however, suffers from high regulations. Compared to SPOT and AAPL, TME is limited globally.
Major Acquisitions
Various smaller content providers
- Year: 2023
- Acquisition Price (USD millions): 100
- Strategic Rationale: Acquired to bolster the company's content library and enhance its user experience.
Growth Trajectory and Initiatives
Historical Growth: Historical growth has been driven by increasing users and expanding the service offering. Growth has slowed recently.
Future Projections: Future growth is projected to be moderate, with continued expansion in music streaming and social entertainment, but tempered by regulatory concerns.
Recent Initiatives: Recent initiatives include strengthening strategic partnerships, expanding content library, and investing in new technologies.
Summary
Tencent Music Entertainment Group holds a dominant position in the Chinese online music market, with a large user base and a diverse offering of music and entertainment services. However, it faces regulatory risks and increasing competition. The company's future growth will depend on its ability to navigate these challenges and diversify its revenue streams. Licensing agreements can be volatile, so TME should also build proprietary content.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company reports
- Industry publications
- Market research reports
- Publicly available information
Disclaimers:
The data provided is for informational purposes only and should not be considered investment advice. Market share data is estimated and may not be precise.
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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