On August 16th, the Hang Seng Index Company announced the latest quarterly review results, in which Tencent Music (09899) was included in the Hang Seng Composite MidCap Index. The change will be implemented after the market closes on September 6th, 2024 (Friday) and will take effect on September 9th, 2024 (Monday).

BOCOM International expects that Tencent Music's membership will increase by 21% and average monthly payment per user will increase by 2% year on year in the first half of the year. The company has focused on improving the core music user experience for its product revamp, but the bank believes that it will still take some time to explore new products. Conservative estimates suggest that there is room for upward adjustment, and the company's gross margin for the second quarter and the second half of the year is expected to reach 33%.

China Merchants Securities has raised its target price for Tencent Music from HKD 130 to HKD 143, as the prospects for online music profits have become clearer, and the level of profitability has gradually expanded and steadily approached that of Tencent Music, further promoting the continuous recovery of its valuation. The company's management continues to focus on enhancing the user experience to drive user growth, launching a new homepage interface at the beginning of the year and continuously enriching its content library.