【Zhongshan Securities: Downgrades Tencent Music Target Price to $15, Lowers 2025 and 2026 Fiscal Year Core Profit Forecast】 Jinshi Data November 19 - Zhongshan Securities published a report stating that Tencent Music (TME.N) had a third-quarter revenue of 7 billion yuan, with a year-on-year recovery of 7% (a 2% decline in the second quarter), in line with expectations. Subscription revenue grew by 20% year-on-year (29% growth in the second quarter), meeting expectations. The number of paying users reached 119 million, an increase of 2 million quarter-on-quarter, slightly better than expected. The firm maintains its overall forecast for Tencent Music's fiscal year 2024, while lowering core profit forecasts for fiscal years 2025 and 2026 by 8% and 10% respectively, mainly reflecting the company's strategic focus shifting more towards ARPPU growth, with net increases in subscription users slowing compared to the firm's previous forecasts; due to delays in concert plans, growth in concert-related revenue has slowed; the company continues to invest in marketing, talent teams, and technology, leading to operating expenses increasing compared to the firm's previous forecasts. The firm predicts group revenue to grow by 2% and 10% year-on-year in 2024 and 2025, with core net profit expected to grow by 24% and 12% year-on-year respectively. Based on the adjustment of profit forecasts, the firm has lowered Tencent Music's target price from $16 to $15, with a rating of 'Buy'. (Source: Jinshi Data)