Glonghui, May 20 | Lyon released a report stating that Tencent Music's first-quarter revenue and profit ratio was mainly due to stronger growth than expected in online music services and a favorable cost structure to drive increased profitability. It is estimated that the trend of profit margin expansion will continue in the next few quarters. The target price was raised from HK$48.9 to HK$67.5, reflecting the predicted price-earnings ratio of 20 times. After three years of adjustment, the compound annual growth rate of profit per share was over 20%, and maintained its “outperforming the market” rating, taking into account dividends and repurchases. The bank expects its online music revenue to increase by 28% year-on-year to 5.4 billion yuan in the second quarter, driven by the growth of paying subscribers and average consumption growth. The adjusted net profit forecast for this year and next two years will increase by 5% and 7% respectively, reflecting good profit margins and stable execution capabilities.