CICC lowers Tencent Music's target price to HKD 57.3 with solid Q2 performance.

Jinshi data news on August 14th, Zhongjin released a rating report, pointing out that Tencent Music (01698.HK) had a second-quarter revenue of 7.16 billion yuan, a year-on-year fall of 1.7%, slightly better than expected; the net profit under non-International Financial Reporting Standards was 1.873 billion yuan, a year-on-year increase of 22.5%, better than the bank’s expectations, mainly due to costs and management expenses lower than expected. Considering the impact of the external environment on the social entertainment business, the bank has lowered the group’s revenue forecast for this year and next year to 28.4 billion yuan and 31.8 billion yuan respectively. Due to cost and expense control, the bank maintains its forecast for non-International Financial Reporting Standards net profit for this year and next year unchanged. The bank has lowered its target price by 12.4% to 57.3 Hong Kong dollars, maintaining its rating as outperforming the industry.