polaazteckingmegaways| Tencent Music-SW gains more than 9% after performance, CICC maintains "outperform industry" rating

Tencent Music-SW (01698) rose 9% after performancepolaazteckingmegaways.48%polaazteckingmegaways, now reported 60polaazteckingmegaways.05 HKDpolaazteckingmegaways, the turnover was HK$3.8494 million.

CICC released a research report saying that it maintains Tencent Music-SW (01698)'s "outperforms the industry" rating. Due to strong growth in online music revenue and higher cost control than expected, it will raise its 2024/2025 Non-IFRS net profit forecast by 2.4%/1.9% to 73.80/89.14 billion yuan. Taking into account the adjustment of earnings forecasts and the long-term development space of the music business, the target price rose 28% to HK$65.4. The company announced 1Q24 results: revenue of 6.768 billion yuan, down 3.4%, slightly exceeding the bank's (6.601 billion yuan) and market's (6.554 billion yuan) expectations;Non-IFRS net profit of 1.704 billion yuan, up 20.8%, exceeding the bank's (1.606 billion yuan) and market's (1.589 billion yuan) expectations, mainly due to lower-than-expected costs and sales expenses.