1698 Stock Overview

Operates online music entertainment platforms to provide music streaming, online karaoke, and live streaming services in the People’s Republic of China. More details

1698 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	3/6
Past Performance	5/6
Financial Health	5/6
Dividends	0/6

Rewards

Trading at 47.8% below our estimate of its fair value

Earnings are forecast to grow 15.23% per year

Earnings grew by 25.8% over the past year

Risk Analysis

No risks detected for 1698 from our risk checks.

My Notes

Capture your thoughts, links and company narrative

Tencent Music Entertainment Group Competitors

NetEase Cloud Music

SEHK:9899

HK$25.2b

China Ruyi Holdings

SEHK:136

HK$31.3b

Alibaba Pictures Group

SEHK:1060

HK$14.0b

Maoyan Entertainment

SEHK:1896

HK$9.8b

Price History & Performance

Summary of share price highs, lows and changes for Tencent Music Entertainment Group
Historical stock prices
Current Share Price	US$48.15
52 Week High	US$62.50
52 Week Low	US$31.10
Beta	0.68
1 Month Change	11.20%
3 Month Change	22.21%
1 Year Change	45.69%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	164.27%

Recent updates

Shareholder Returns

	1698	HK Entertainment	HK Market
7D	3.2%	-3.7%	-2.2%
1Y	45.7%	-7.9%	18.3%

Return vs Industry: 1698 exceeded the Hong Kong Entertainment industry which returned -7.9% over the past year.

Return vs Market: 1698 exceeded the Hong Kong Market which returned 18.3% over the past year.

Price Volatility

Is 1698's price volatile compared to industry and market?
1698 volatility
1698 Average Weekly Movement	8.9%
Entertainment Industry Average Movement	10.4%
Market Average Movement	8.9%
10% most volatile stocks in HK Market	18.7%
10% least volatile stocks in HK Market	4.1%

Stable Share Price: 1698 has not had significant price volatility in the past 3 months compared to the Hong Kong market.

Volatility Over Time: 1698's weekly volatility (9%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
n/a	5,185	Ross Liang	www.tencentmusic.com

Tencent Music Entertainment Group operates online music entertainment platforms to provide music streaming, online karaoke, and live streaming services in the People’s Republic of China. It offers QQ Music, Kugou Music, and Kuwo Music that enable users to discover music in personalized ways; long-form audio content, including audiobooks, podcasts and talk shows, as well as music-oriented video content comprising music videos, live performances, and short videos; and WeSing, which enables users to sing along from its library of karaoke songs and share their performances in audio or video formats with friends. The company also delivers music-centric live streaming services primarily through the Live Streaming tab on QQ Music, Kugou Music, Kuwo Music, WeSing, Kugou Live, and Kuwo Live that provides an interactive online stage for performers and users to showcase their talent and engage with a diverse audience base; and Lazy Audio, an audio platform.

Tencent Music Entertainment Group Fundamentals Summary

How do Tencent Music Entertainment Group's earnings and revenue compare to its market cap?
1698 fundamental statistics
Market cap	HK$144.99b
Earnings (TTM)	HK$6.38b
Revenue (TTM)	HK$29.64b

22.7x

P/E Ratio

4.9x

P/S Ratio

Is 1698 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
1698 income statement (TTM)
Revenue	CN¥27.84b
Cost of Revenue	CN¥16.42b
Gross Profit	CN¥11.41b
Other Expenses	CN¥5.42b
Earnings	CN¥5.99b

Last Reported Earnings

Sep 30, 2024

Next Earnings Date

n/a

Earnings per share (EPS)	3.79
Gross Margin	41.00%
Net Profit Margin	21.53%
Debt/Equity Ratio	5.3%

How did 1698 perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

25%

Payout Ratio

Company Analysis and Financial Data Status

Data	Last Updated (UTC time)
Company Analysis	2024/12/20 21:55
End of Day Share Price	2024/12/20 00:00
Earnings	2024/09/30
Annual Earnings	2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

Package	Data	Timeframe	Example US Source ^*
Company Financials	10 years	Income statement Cash flow statement Balance sheet	SEC Form 10-K SEC Form 10-Q
Analyst Consensus Estimates	+3 years	Forecast financials Analyst price targets	Analyst Research Reports Blue Matrix
Market Prices	30 years	Stock prices Dividends, Splits and Actions	ICE Market Data SEC Form S-1
Ownership	10 years	Top shareholders Insider trading	SEC Form 4 SEC Form 13D
Management	10 years	Leadership team Board of directors	SEC Form 10-K SEC Form DEF 14A
Key Developments	10 years	Company announcements	SEC Form 8-K

^* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Tencent Music Entertainment Group is covered by 57 analysts. 29 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

Analyst	Institution
Ishan Majumdar	Baptista Research
Jiong Shao	Barclays
Yanfang Jiang	Benchmark Company