$Tencent Music (TME.US)$Excluded from the October 2022 inven...

The Chinese company listed in 2018 is mainly engaged in the online music business. It has a single Chinese market, and the current price is 9.7.

The revenue growth rate has declined year by year over the past 5 years, shrinking 9.3% in 2022, while operating profit declined continuously in 2020 and 2021. Due to drastic cuts in sales expenses in 2022, it grew 13.6%, net profit shrank 23% in 2021, and increased 19.4% in 2022.

In the first three quarters of 2023, revenue contracted by 0.3%. Operating profit continued to increase by 59.7% due to drastic cuts in sales expenses, and net profit increased by 44.7%.

Currently, the price-earnings ratio is 29.5 and the price-earnings ratio is TTM22.8. Considering the recent continuous contraction in revenue, profit is driven by cuts in sales expenses, which is unsustainable and unattractive for the time being.