Why Tencent Music Entertainment Could double your investment
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Hello,
Over the years, I've developed a passion for identifying undervalued companies that often go unnoticed yet possess immense potential. These are the outliers—companies that have the ability to significantly grow your portfolio. One such company is Tencent Music Entertainment Group (TME).
Tencent Music operates a portfolio of popular online music platforms, offering music streaming, online karaoke, and live streaming services. Its major brands include QQ Music, Kugou Music, Kuwo Music, and WeSing. As of the second quarter of 2024, Tencent Music reported approximately 571 million monthly active users (MAUs). Of these, 117 million were paying subscribers, marking an impressive year-on-year growth rate of 17.7%. In comparison, its larger competitor, Spotify, has 626 million MAUs and 246 million premium subscribers across 184 regions. Given that Tencent Music has yet to fully expand into new markets, this presents a substantial growth opportunity.
Financially, Tencent Music boasts a market capitalization of $20.59 billion and a basic earnings per share (EPS) of $0.50 USD. For the fiscal year ending in 2023, the company generated $3.79 billion in revenue, with net income growing to $694.42 million. Notably, Tencent Music has no preferred shares, which enhances shareholder value. The company also holds $3.87 billion in cash and short-term investments, while its total liabilities stand at $2.57 billion, meaning it could cover all liabilities with its cash reserves alone.
Additionally, the book value per share (BVPS) stands at $5.14 USD.
From a technical analysis perspective, the stock appears to have reached a bottom and is currently in a corrective phase, signaling potential for further upside. Our recommendation is to buy around $10 USD, with a price target of $28 USD.
Good luck, and happy trading!
Over the years, I've developed a passion for identifying undervalued companies that often go unnoticed yet possess immense potential. These are the outliers—companies that have the ability to significantly grow your portfolio. One such company is Tencent Music Entertainment Group (TME).
Tencent Music operates a portfolio of popular online music platforms, offering music streaming, online karaoke, and live streaming services. Its major brands include QQ Music, Kugou Music, Kuwo Music, and WeSing. As of the second quarter of 2024, Tencent Music reported approximately 571 million monthly active users (MAUs). Of these, 117 million were paying subscribers, marking an impressive year-on-year growth rate of 17.7%. In comparison, its larger competitor, Spotify, has 626 million MAUs and 246 million premium subscribers across 184 regions. Given that Tencent Music has yet to fully expand into new markets, this presents a substantial growth opportunity.
Financially, Tencent Music boasts a market capitalization of $20.59 billion and a basic earnings per share (EPS) of $0.50 USD. For the fiscal year ending in 2023, the company generated $3.79 billion in revenue, with net income growing to $694.42 million. Notably, Tencent Music has no preferred shares, which enhances shareholder value. The company also holds $3.87 billion in cash and short-term investments, while its total liabilities stand at $2.57 billion, meaning it could cover all liabilities with its cash reserves alone.
Additionally, the book value per share (BVPS) stands at $5.14 USD.
From a technical analysis perspective, the stock appears to have reached a bottom and is currently in a corrective phase, signaling potential for further upside. Our recommendation is to buy around $10 USD, with a price target of $28 USD.
Good luck, and happy trading!
Nota
Operación activa
Portfolio Manager
Dyer & Blair investment Bank, Kenya.
Follow below handles for investment insights
Twitter: twitter.com/thesharkke
Free in-depth stock markets analysis Telegram channel: t.me/stocksfromtechnicaleye
Dyer & Blair investment Bank, Kenya.
Follow below handles for investment insights
Twitter: twitter.com/thesharkke
Free in-depth stock markets analysis Telegram channel: t.me/stocksfromtechnicaleye
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