Shares of Tencent Music Entertainment Group (TME) soared 5.13% on Thursday, continuing their recent upward momentum as investors appear bullish on the company's prospects for strong earnings growth in the years ahead.

TME's stock has rallied 30% over the past month and is now up a remarkable 87% year-to-date, driven by optimism surrounding the company's ability to navigate market headwinds and deliver impressive financial results. Despite a high price-to-earnings ratio of 25.2x, well above the industry average, analysts believe the premium valuation is justified by TME's robust earnings outlook.

The music streaming giant has already demonstrated impressive earnings growth, with its bottom line rising 22% in the last year and a staggering 44% over the past three years. Looking ahead, analysts expect TME to sustain this momentum, projecting annual earnings growth of 18% over the next three years – significantly higher than the broader market's expected growth of 10%.