Tencent Music -SW rose more than 5%, continuously refreshed high profitability, steadily increased online music revenue and accelerated growth.

　　Tencent Music -SW(01698) rose more than 5%, reaching a new high of HK$ 47.2. As of press time, it rose by 5.74% to HK$ 46.95, with a turnover of HK$ 6.6897 million.

　　In the news, Tencent Music recently released its annual results for 2023, and the group achieved a total revenue of 27.75 billion yuan (RMB, the same below) during the period. The profit attributable to equity holders of the company was 4.92 billion yuan, up 33.8% year-on-year. Among them, online music service revenue increased strongly by 38.8% year-on-year, reaching 17.33 billion yuan (US$ 2.44 billion). Bank of America Securities pointed out that Tencent Music’s performance in the last quarter was stable, exceeding market expectations, driven by the increase in the number of music paying users and the promotion of ARPU. It is expected that the growth of its core music business will remain strong this year.

　　Goldman Sachs said that Tencent Music has been one of the best performing companies in the China market in the past six months, and predicted that the company will continue to perform well in 2024. Mainly because of the operating leverage generated by the high incremental profits of the company’s music subscription and advertising, it further promotes the upward adjustment of the company’s profit forecast; After the New Year promotion, the average income per paying user (ARPPU) recovered, which led to the further growth of the company’s music service income; At the same time, the structural improvement of music payment tendency is driven by the continuous improvement of monetization strategy of Tencent Music.