Dec. 5 at 6:14 PM
$TME Tencent Music Entertainment: Leader in China's music streaming market with 32.7% upside potential and 1.1% dividend yield
Entry Price - 18.84
Target price - 25.00
Position size - 1%
Risk - High
Horizon - 12 months
Growth potential - 32.7%
Dividends - 1.1%
What's the idea?
1. The success of music monetization is multifaceted and driven by successful user conversion to subscriptions and an increase in the average revenue per paying user (ARPPU). The recent introduction of the Super VIP price tier, which offers unique benefits to fans, is already pushing the company’s ARPPU higher.
2. Tencent Music's hard work on partnerships, concert organization, and international content licensing provides an abundance of content on the platform and increases users' perception of the value of TME's services. TME also leverages its scale, expertise, and finances to produce original content, thus improving the economics.
