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China's largest online music platform (QQ Music, Kugou, Kuwo) offering streaming, online karaoke and live audio/social entertainment.
China's largest online music platform (QQ Music, Kugou, Kuwo) offering streaming, online karaoke and live audio/social entertainment.
Earns from subscriptions and advertising on its music apps and from virtual gifts bought in live-streamed entertainment; it pays labels and artists for the right to play their catalog, which is its main cost. Tencent is the controlling shareholder, and the group was formed in 2016 when Tencent's music business merged with China Music Corporation.
In one line: China's Spotify, with a karaoke/social-audio twist.
Moat: narrow (network effects, scale, distribution). Dominant licensed-music catalog and Tencent ecosystem distribution (WeChat/QQ) in China's streaming market.
Headquarters: Shenzhen, China · Founded: 2016 · Employees: 5,690
Size Tencent Music Entertainment (1698.HK) is a Hong Kong Communication Services company (Internet Software/Services) with a market value of $13.9B, the 120th largest of 891 Hong Kong companies the cockpit tracks. Shares closed at HK$37.28 on 6 Nov 2026.
Performance Over six months the shares fell 1.7%, against +2.8% for the median peer and -13.4% for the Hong Kong market (cap-weighted) — 4th lowest of 8 in its peer set.
Growth Revenue grew 16.1% over the last twelve months (peer median +13.7%); the operating margin is 29.4% (peer median 12.4%).
Valuation It trades at 11.0× forward earnings against a peer median of 15.0× (2nd cheapest of 8).
Price implies For today's price to make sense, revenue must grow about 1% a year for seven years (Req g). Recent delivered growth is +2%, so the hurdle is -1 pp: the price already allows for a slowdown.
Capital Return on invested capital runs 0.5 points above its cost of capital (11.0% WACC).
Next results Next results expected around 17 Nov 2026 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | HK$37.9B | HK$35.7B | HK$30.8B | HK$30.7B | HK$33.0B |
| Revenue growth | — | +16% | 0% | -7% | — |
| Gross profit | HK$16.8B | HK$15.5B | HK$12.8B | HK$10.5B | HK$9.92B |
| EBITDA | HK$13.2B | HK$12.0B | HK$9.03B | HK$6.39B | HK$5.09B |
| Net income | HK$9.97B | HK$12.0B | HK$7.20B | HK$5.44B | HK$4.28B |
| Free cash flow | n/a | HK$11.0B | HK$10.7B | HK$7.93B | HK$8.55B |
| Capital expenditure | n/a | HK$1.29B | HK$1.12B | HK$1.29B | HK$1.22B |
| Total debt | HK$19.5B | HK$4.25B | HK$6.44B | HK$6.66B | HK$6.70B |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| Tencent Music Entertainment 1698.HK | $13.9B | -2% | +16% | 29% | 11.0× | 0.6% |
| NetEase Cloud Music 9899.HK | $2.52B | -21% | +6% | 17% | 10.1× | -18.7% |
| Spotify Technology SPOT | $124B | +44% | +17% | 15% | 37.4× | 29.4% |
| Tencent 0700.HK | $482B | -11% | +16% | 32% | 12.5× | 6.4% |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | 1698.HK | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | +19.9% | -6.0% | highest of 8 |
| 6-month return | -1.7% | +2.8% | 4th lowest of 8 |
| Distance from 52-week high | -59.0% | -32.2% | 2nd lowest of 8 |
| Revenue growth (TTM) | +16.1% | +13.7% | 2nd highest of 8 |
| Operating margin | 29.4% | 12.4% | 2nd highest of 8 |
| Forward P/E | 11.0× | 15.0× | 2nd cheapest of 8 |
| Growth the price implies (Req g, 7 yrs) | 0.6% | 9.0% | 3rd least demanding of 7 |
| Growth delivered (Del g) | +1.7% | +16.4% | lowest of 7 |
| Hurdle (Req g minus delivered) | -1.2 pp | -12.7 pp | most demanding of 7 |
| ROIC minus cost of capital | +0.5 pp | +18.5 pp | 4th lowest of 8 |
| EV / EBITDA | 7.3× | 10.2× | 2nd cheapest of 8 |
| Net debt / EBITDA | -1.2× | -1.3× | 4th most indebted of 8 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Tencent Music Entertainment 1698.HK | Hong Kong | $13.9B | -2% | +16% | 29% | 11.0× | 0.6% | +1.7% |
| Nexon 3659.T | Japan | $13.8B | +10% | +15% | 26% | 22.4× | -9.1% | +10.1% |
| Pinterest PINS | United States | $10.9B | -11% | +15% | 6% | 8.8× | 16.2% | +20.1% |
| Reddit RDDT | United States | $18.4B | -39% | +62% | 29% | 15.0× | 18.0% | +57.3% |
| Match MTCH | United States | $8.88B | +6% | 0% | 30% | 13.6× | 1.8% | +7.8% |
| Bidu-sw 9888.HK | Hong Kong | $26.4B | -43% | -1% | 7% | 14.5× | n/a | n/a |
| Liberty Media FWONA | United States | $27.3B | +18% | +12% | 12% | 51.0× | 29.0% | +31.4% |
| Cyber Agent 4751.T | Japan | $4.13B | +3% | +14% | 10% | 15.4× | -11.3% | +12.8% |