Golden Finance News | Bocom Intl issued research reports, stating that tencent music (01698) had third-quarter revenue of 7 billion yuan (RMB, same below), showing positive year-on-year growth. The gross margin is 43%, with a 0.6 percentage point improvement compared to the previous quarter. Adjusted net income attributable to shareholders increased by 29% year-on-year, with an adjusted net margin of 26%, remaining relatively stable compared to the previous quarter. Music subscription revenue increased by 20% year-on-year, including: 1) Music members increased by 2 million compared to the previous quarter, slightly better than the bank's previous expectations; 2) Monthly ARPPU is 10.8 yuan, with a year-on-year/increase of 5%/1%.

The bank predicts a 17% increase in music subscription revenue for the fourth quarter, with a net increase of 2 million members, and a possible year-on-year increase of 3% to 11 yuan for monthly ARPPU. The long-term expansion of SVIP scale will have a more significant impact on ARPPU boost; the non-member year-on-year growth rate will slow to 9%; social income may remain stable compared to the previous quarter. The bank basically maintains the 2025 growth expectations for members/revenue/adjusted net income (+8 million / +8% / +13%). Maintaining a SOTP target price of $14 / 56 HKD and a buy rating.