Understanding the Market | Why did Tencent Music rise over 4%?
TME-SW stock price rose by more than 4%, reaching HKD 35.55, with a turnover of HKD 810,600. Tencent Music has renewed its multi-year strategic cooperation agreement for copyright authorization with Universal Music. Analysts predict that the target price for TME-SW is HKD 40.77.
Zhitong App learned that TME-SW (01698) rose more than 4%, with a 4.87% increase at the time of writing, reaching HKD 35.55, with a turnover of HKD 810,600.
In terms of news, on January 3rd, Tencent Music Entertainment Group (referred to as Tencent Music Entertainment) and Universal Music Group (referred to as Universal Music) jointly announced the renewal of their long-term strategic cooperation agreement based on their deepening long-term partnership. Tencent Music Entertainment will continue to distribute Universal Music's global music catalog, including Dolby Atmos and high-quality (HD) content, on its online music platforms such as QQ Music, Kugou Music, Kuwo Music, as well as its social entertainment platforms including Quanmin K Ge.
Guotai Junan recently issued a research report, giving TME-SW an "buy" rating with a target price of HKD 40.77. Based on the company's years of layout in the music ecosystem, it is believed that the company has the ability to cultivate music content that meets current trends within its platform, with rich data, user base, and accumulated experience. As the mindset of online music payment matures, online music users are increasingly willing to pay for original works. The bank expects the company to expand into new markets through non-subscription services and create significant value for the company through innovative copyright value from artists in the future.