Tencent Music Entertainment Intrinsic Stock Value – TENCENT MUSIC ENTERTAINMENT Reports FY2022 Q4 Earnings Results Ending March 21 2023

March 25, 2023

Earnings Overview

TENCENT MUSIC ENTERTAINMENT ($SEHK:01698) revealed its earnings for the period of FY2022 Q4, which ended on March 21 2023, on December 31 2022. The company earned a total revenue of CNY 1.1 billion, representing a 113.0% year-on-year increase. However, their net income was CNY 7.4 billion, indicating a 2.5% year-on-year decrease.

Market Price

TENCENT MUSIC ENTERTAINMENT reported its earnings results for FY2022 Q4 ending March 21 2023 on Tuesday. The stock opened at HK$29.9 and closed at HK$30.1, up by 0.7% from the prior closing price of HK$29.9. This indicates that investors have confidence in the company’s ability to continue growing. This was mainly driven by increased revenues from subscription and advertising services, as well as increased revenue from online music services.

This indicates that the company’s business model is working well and that investors are being rewarded for their confidence in the company. Overall, these reports are positive and show that TENCENT MUSIC ENTERTAINMENT is well positioned to continue to grow in the future. Investors should remain confident in the company’s long-term prospects and continue to watch the stock performance closely. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for Tencent Music Entertainment. More…

    Total Revenues Net Income Net Margin
    28.34k 3.68k 13.0%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for Tencent Music Entertainment. More…

    Operations Investing Financing
    7.48k -1.45k -3.42k
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for Tencent Music Entertainment. More…

    Total Assets Total Liabilities Book Value Per Share
    67.01k 17.88k 13.93
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for Tencent Music Entertainment are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    3.7% -7.5% 15.8%
    FCF Margin ROE ROA
    26.4% 5.9% 4.2%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis – Tencent Music Entertainment Intrinsic Stock Value

    At GoodWhale, we have conducted a thorough analysis of TENCENT MUSIC ENTERTAINMENT’s fundamentals to determine its fair value. Our proprietary Valuation Line has determined its fair value to be roughly HK$26.2. Currently, the stock is being traded at HK$30.1, which means it is overvalued by a margin of 14.9%. This provides investors with an opportunity to either buy the stock at a premium or wait for the stock price to revert back to its fair value. More…

  • Risk Rating Analysis
  • Star Chart Analysis
  • Valuation Analysis
  • Peers

    The competition in the online music streaming sector is rife, with Tencent Music Entertainment Group (TME) facing stiff competition from Lizhi Inc, Bilibili Inc, and JOYY Inc. All four companies are vying for a share of the market, each offering unique services and products to attract users.

    – Lizhi Inc ($NASDAQ:LIZI)

    Lizhi Inc. is a publically traded Chinese audio and video streaming platform engaged in audio and video streaming services, music and audio content, radio, live streaming, and related value-added services. As of 2023, the company had a market capitalization of 35.06M and a Return on Equity of 13.45%. Market capitalization is an indicator of the size of a company, and shows the total value of a company’s equity. A higher market cap indicates a larger, more established company with more access to capital. A higher return on equity indicates that the company is generating more profits compared to its total equity, suggesting good management and strong profitability. Lizhi Inc. has a relatively small market capitalization compared to other companies in its sector, but its 13.45% return on equity indicates that it has been performing well.

    – Bilibili Inc ($SEHK:09626)

    Bilibili Inc is a Chinese online entertainment company. Founded in 2009, the company offers a variety of services, including video streaming, e-commerce, and gaming. As of 2023, Bilibili Inc has a market cap of 76.92B and a Return on Equity of -28.14%. This indicates that the company is not performing as well as it did in the past and investors are not viewing the company as favorably as they once did. Despite this, the large market cap shows that Bilibili Inc is still a major player in the online entertainment industry and has the potential to make a comeback.

    – JOYY Inc ($NASDAQ:YY)

    JOYY Inc is a Chinese social media and gaming company that has seen tremendous success since its initial public offering in 2014. As of 2023, the company has a market cap of $2.1 billion. This market cap signifies the confidence many investors have in the future of the company and their belief in the potential for continued success. The company’s return on equity (ROE) of 7.54% also reflects investor confidence in the firm’s financial performance. This ROE indicates that the firm is able to generate a substantial return on the capital they have invested in the business. JOYY Inc continues to build on its success, offering a variety of social media and gaming platforms to its customers.


    TENCENT MUSIC ENTERTAINMENT (TME) reported its earnings results for FY2022 Q4, showing a total revenue of CNY 1.1 billion, representing a 113.0% increase year over year. Net income, however, was CNY 7.4 billion, down 2.5% year over year. Investing in TME may be a good opportunity due to its strong growth rate and the potential of its music streaming services.

    Additionally, the company’s broad portfolio of entertainment and related services should provide a more diverse revenue stream in the long run. Overall, TME is a stock worth considering for investors looking to capitalize on an emerging market.

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