Goldman Sachs released a research report saying that it will maintain$TME-SW (01698.HK)$According to the “buy” rating, the company's profit is expected to grow at an average compound annual rate of 26% from 2024 to 2025, and the target price was raised to HK$62.3. The company's first-quarter results beat expectations. Revenue was 2% and 3% higher than the bank's and market expectations, operating profit was 25% higher than the bank's expectations, and net profit was 12% and 11% higher than the bank's and market expectations, respectively.

The bank believes that through closer partnerships with record companies, Tencent Music may reduce its revenue share ratio with record companies; improve shareholder return plans (annualized return of about 2%); and higher profit margins in the social entertainment business (WeSing) monetization). Furthermore, the bank indicates that Tencent Music's operating leverage in the music business will further increase profits. Furthermore, with structural improvements in the company's monetization strategy and increased users' willingness to pay, it is believed that the company's music business revenue will grow further.