Chinese Music Platform Soars 6% Just a Week After Earnings Release

Tencent Music Entertainment Group ADR (TME) surged 5.68% to close at $9.31 on the New York Stock Exchange on the 25th. Its market capitalization climbed to approximately $5.57 billion (about KRW 7.8 trillion), adding roughly $330 million (KRW 470 billion) in a single day, with trading volume reaching 6.36 million shares.

In its first-quarter 2026 results announced on the 12th, Tencent Music reported revenues of RMB 7.9 billion, up 7.3% year-on-year, and an IFRS-based net profit of about RMB 2.1 billion, underscoring steady growth. Revenue from music-related services rose 12.2%, and the expansion of subscription and SVIP users helped lift cash and short-term investments to RMB 41 billion. The company also continues to return capital to shareholders through dividends and share buybacks. Some long-term investors regard the stock as undervalued relative to its consistent earnings and cash flow, naming it a “deep value” opportunity based on its dividend and buyback policy.

As an online music and audio platform under Chinese tech giant Tencent, the company operates QQ Music, Kugou, Kuwo and WeSing, holding a leading share of China’s music-streaming market. After its simultaneous listings on the NYSE and Hong Kong Stock Exchange, it formed a strategic global alliance with Spotify through a share swap.