Tencent Music's 15min chart triggers RSI Oversold, KDJ Golden Cross.

Based on the technical analysis of Tencent Music's 15-minute chart, the Relative Strength Index (RSI) has reached an oversold level, while the Kinetick/Dynamic KDJ indicator has formed a golden cross at 08/14/2025 16:00. This suggests that the stock price has experienced a significant decline, potentially driven by factors unrelated to its fundamental value. However, the shift in momentum towards the upside indicates a potential increase in the stock price in the near future.

Title: Tencent Music Entertainment Group (TME) Q2 2025 Financial Results and Market Analysis

Tencent Music Entertainment Group (TME), a leading online music and audio entertainment platform in China, reported its Q2 2025 financial results, showcasing robust performance and strategic initiatives. The company's net income surged to CNY 2,409 million, a 56% increase over the previous quarter [1].

Financial Performance

Revenue and Growth: TME's revenue for the quarter stood at CNY 8.44 billion (US$1.18 billion), representing a 17.9% year-over-year increase. This growth was primarily driven by strong performance in online music services, which saw a 26.4% year-over-year increase to CNY 6.85 billion (US$957 million) [1]. Music subscription revenue rose 17.1% to CNY 4.38 billion (US$611 million), while monthly average revenue per paying user (ARPPU) climbed to CNY 11.7 from CNY 10.7 in the same period last year [1].

User Growth: The company's operational highlights included a 6.3% increase in paying users to 124.4 million and a 3.2% decrease in monthly active users to 553 million. This indicates a focus on converting users into paying subscribers [1].

Strategic Initiatives: TME expanded its content ecosystem through strategic partnerships with K-pop companies The Black Label and H M Music, and collaborations with Chinese star Wang Feng and SM Entertainment. Live events also contributed significantly, with G-Dragon's concert tour in Macau drawing 36,000 fans [1].

Product Innovation: New features such as Viper HiFi and one-click audio enhancement 2.0 on Kugou Music, along with an AI Chorus tool, were introduced. SVIP users enjoyed exclusive benefits like early concert ticket access, artist digital albums, and collectible star cards from various artists [1].

Market Analysis

Technical Indicators: Based on the technical analysis of TME's 15-minute chart, the Relative Strength Index (RSI) has reached an oversold level, while the Kinetick/Dynamic KDJ indicator has formed a golden cross at 08/14/2025 16:00. This suggests that the stock price has experienced a significant decline, potentially driven by factors unrelated to its fundamental value. However, the shift in momentum towards the upside indicates a potential increase in the stock price in the near future [2].

Analyst Ratings: According to 7 analysts, the average rating for TME stock is "Strong Buy." The 12-month stock price target is $20.43, which is a decrease of -20.04% from the latest price. This consensus reflects a positive outlook on the company's future performance [2].

Conclusion

Tencent Music Entertainment Group's Q2 2025 financial results demonstrate strong performance and strategic initiatives that position the company well for continued growth in the music entertainment space. While technical indicators suggest a potential upward trend in the stock price, investors should remain vigilant and consider both fundamental and technical factors when making investment decisions.

References
[1] https://www.ainvest.com/news/tencent-music-entertainment-group-reports-q2-2025-net-income-cny-2-409-million-2508/
[2] https://stockanalysis.com/stocks/tme/