Tencent Music shares drop after brokers cut price as outlook softens

Tencent Music Entertainment

12/08/2026 04:05

** Tencent Music Entertainment's 1698.HK Hong Kong shares drop 14.1% to HK$33.14, the lowest level since June 30
** Stock set for biggest one-day pct decline since March 18, snapping two straight rising sessions
** Top pct loser on Hang Seng TECH Index .HSTECH, which slips 1.1%
** U.S.-listed stock TME.N plunged 11.9% on Tuesday
** Citi ("Buy") lowers TP to $11.40 from $13, saying business integration process is expected to weigh on near-term growth initiatives and result in margin pressure
** Despite 2Q26 print coming in slightly ahead of expectation, 3Q26/FY26 outlook softens reflecting ongoing pressure in core membership revs and decelerating growth of ad revenues - Citi
** Jefferies ("Buy") lowers PT to $13 from $14, factoring in latest business trends
** Chinese online music and audio entertainment platform quarterly adjusted earnings of 1.70​ yuan/shr vs 1.66 yuan a year ago, beat market estimates 
** Revenue up 5.8% y/y, beating analyst expectations
** YTD, Hong Kong stock down 51.7%, U.S.-listed shares down 50.3% 

(Reporting by Donny Kwok)
((donny.kwok@thomsonreuters.com))