Major Bank Rating | Lyon: Tencent Music Pullback Offers Entry Opportunity, Reiterates "Outperform" Rating

Glonghui, January 19｜CITIC Lyon released a research report stating that Tencent Music’s stock price has underperformed the market since the beginning of the year, possibly due to continued market concerns over intensified competition, a reset of expectations regarding the resumption of K-pop concerts in mainland China, and the potential impact of increased anti-monopoly activities on its acquisition of Himalaya. Considering its sustainable subscription model and the product competitiveness built around connections between fans and artists, the bank believes the market has oversold the stock. Its price has corrected by 38% from the high on September 17 last year, offering a good opportunity at the current attractive risk-reward level. The “outperform” rating is reiterated, and the target prices for US and Hong Kong stocks are maintained at $23.7 and HK$92.1, respectively.