What changed
$TME — BUY 📊 | 6 MONTHS THESIS
🎯 latest | Rev $4.3B | EPS $1.46 vs $1.43 🟢
💡 Consensus expects low single-digit growth and continuous multiple compression due to regulatory fears and market maturity. Variant view: subscription revenue growth, operating leverage, and aggressive share buybacks are underappreciated; the stock is priced for earnings decline that is unlikely to materialize.
📉 Reward/risk: 2.25:1
🏢 Business Quality: 7/10 - Dominant market share in China music streaming with sticky user base, high free cash flow conversion, and strong balance sheet; however, growth is moderate and regulatory overhang persists.
📊 Valuation: cheap - P/E 6.0x vs. historical 15-25x and peer Spotify 40x+; FCF yield >15%; EV/EBITDA ~5x.
🔮 Catalyst: Next quarterly earnings release or announcement of increased share buyback program.
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/TME0620