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Tencent Music Entertainment Group (TME)

Upturn stock ratingUpturn stock rating
$25.52
Last Close (24-hour delay)
Profit since last BUY79.59%
upturn advisory
Strong Buy
BUY since 68 days
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  • SELL Advisory (Loss)​
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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!

Upturn Star Rating

rating

Above Average Performance

These Stocks/ETFs, based on Upturn Advisory, frequently surpass the market, reflecting reliable and trustworthy advice.

Number of Analysts

rating

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

Analysts Price Target For last 52 week
$26.83 Target price
52w Low $9.41
Current$25.52
52w High $26.54

Analysis of Past Performance

Type Stock
Historic Profit 90.87%
Avg. Invested days 50
Today’s Advisory Strong Buy
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 2.0
Stock Returns Performance Upturn Returns Performance 4.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 08/14/2025

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

ai summary icon Upturn AI SWOT

Tencent Music Entertainment Group

stock logo

Company Overview

overview logo 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.

business area logo 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 logo 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

overview logo 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 logo 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

competitor logo 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.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization 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
Full time employees 5353

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.