The bank's focus includes management's disclosure of the Super Membership (SVIP) program and the net growth trend of paying users.
The Zhitong Finance App learned that Lyon released a research report stating that the target price for Tencent Music SW (01698) was lowered from HK$65.1 to HK$62.2, reaffirming its “outperforming the market” rating and predicting that profits for the third quarter will remain resilient. The bank's profit forecast for Tencent Music for this year and next two years was raised by 0.6% and 0.7% respectively, mainly reflecting the bank's reduced forecast for its social entertainment business, which was partly offset by better cost control, and the company's revenue contribution for the third quarter was expected to drop to 20%.
According to reports, Tencent Music will disclose the third quarter results on November 12. The bank expects the company's total revenue to increase 6.8% year over year to 7 billion yuan; adjusted net profit will increase 33% year over year to 1.96 billion yuan, mainly due to the online music business expected to increase 24% year on year to 5.6 billion yuan, but this is partially offset by the social entertainment business revenue forecast to fall 31% year on year to 1.4 billion yuan. The bank's focus includes management's disclosure of the Super Membership (SVIP) program and the net growth trend of paying users.
