Core Viewpoint - The report from CICC maintains the Non-IFRS net profit forecast for NetEase Cloud Music (09899) for 2026/27, with a target price of HKD 224, indicating a 22% upside from the current price [1] Financial Performance - For 2025, the company's revenue reached RMB 7.759 billion, aligning closely with CICC's expectation of RMB 7.807 billion, while the Non-IFRS net profit was RMB 2.860 billion, also in line with expectations [2] - Online music revenue for 2025 was RMB 5.994 billion, reflecting a 12% year-on-year increase, with subscription revenue growing by 13.3% and non-subscription revenue by 5.2% [2] - The company aims to expand its paid user base in 2026, with expectations for online music revenue to grow by 10.8% year-on-year, and subscription revenue to increase by 12.1% [2] Cost Management and Profitability - The gross margin for 2025 improved to 35.7%, an increase of 2 percentage points year-on-year [2] - Sales, management, and R&D expenses decreased year-on-year, indicating a disciplined approach to spending [2] - CICC forecasts a 20% increase in operating profit for 2026, projecting it to reach RMB 1.95 billion [2] Industry Dynamics - The industry is experiencing concerns regarding stability, but NetEase Cloud Music's user base remains relatively stable compared to competitors [3] - The company has launched its self-developed AI recommendation model, Climber, and is focusing on user experience and innovation [3] - CICC emphasizes the importance of monitoring competitors' strategies in copyright and user acquisition [3]

Core Viewpoint - The report from CICC maintains the Non-IFRS net profit forecast for NetEase Cloud Music (09899) for 2026 and 2027, with a target price of HKD 224, indicating a 22% upside from the current price [1]. Financial Performance - The 2025 Non-IFRS net profit of NetEase Cloud Music is in line with expectations, reporting revenue of RMB 7.759 billion and a Non-IFRS net profit of RMB 2.860 billion, both closely matching CICC's forecasts [2]. Music Business Outlook - The online music revenue for 2025 is projected at RMB 5.994 billion, reflecting a 12% year-on-year increase, driven by a 13.3% growth in subscription revenue and a 5.2% increase in non-subscription revenue. The company aims to expand its paid user base in 2026, with an expected 10.8% growth in online music revenue and a 12.1% increase in subscription revenue [3]. - Social entertainment and other revenues for 2025 are expected to decline by 32% to RMB 1.765 billion due to a cautious operational strategy, although there is a slight improvement in the second half of 2025 [3]. Profitability and Cost Management - The gross margin for 2025 is reported at 35.7%, an increase of 2 percentage points year-on-year. Operating expenses for sales, management, and R&D have decreased, indicating controlled spending. The company plans to increase investment in 2026, particularly in content costs and customer acquisition [4]. - The operating profit for 2026 is anticipated to grow by 20% to RMB 1.95 billion, supported by healthy growth in the music business [4]. Industry Dynamics and Innovation - The industry landscape is stabilizing, with concerns about competition. NetEase Cloud Music's user base remains relatively stable, and the company is focusing on user experience and innovation, including the launch of its AI-generated recommendation model, Climber [5]. - The company is positioned to differentiate itself in the market, with a focus on user retention and experience as key strategies [5].

Core Viewpoint - The company reported 2025 performance that aligns with expectations, showing a slight decline in revenue but stable Non-IFRS net profit, indicating resilience in its business model [1][2]. Performance Review - In 2025, the company achieved revenue of 7.759 billion yuan, a decrease of 2.4%, which is in line with expectations but slightly below Bloomberg consensus [1]. - Non-IFRS net profit for 2025 was 2.860 billion yuan, meeting both internal and external forecasts [1]. Development Trends - The online music segment is expected to see growth in both volume and price in 2026, with a projected revenue increase of 10.8% year-on-year [1]. - Online music revenue for 2025 was 5.994 billion yuan, reflecting a 12% increase, driven by a 13.3% rise in subscription revenue [1]. - Social entertainment revenue for 2025 was 1.765 billion yuan, down 32%, but showed slight improvement in the second half of 2025 [1]. Profitability and Cost Management - The gross margin for 2025 improved to 35.7%, up 2 percentage points year-on-year, while sales, management, and R&D expenses decreased [2]. - The company plans to increase investment in 2026, focusing on content costs and customer acquisition [2]. - Operating profit is expected to grow by 20% in 2026, reaching 1.95 billion yuan [2]. Industry Outlook - The industry is experiencing stabilization, with user experience and continuous innovation being key focus areas [2]. - The company has launched its AI-driven recommendation model, Climber, to enhance user engagement and differentiate itself in the market [2]. - Despite competitive pressures, the company is expected to maintain a stable user base and mitigate risks from competitors' strategies [2]. Profit Forecast and Valuation - The company maintains its Non-IFRS net profit forecasts for 2026 and 2027, with current price corresponding to 16/15 times the Non-IFRS P/E for those years [2]. - The target price has been adjusted down by 31% to 224 HKD, reflecting a 22% upside potential from the current price [2].

Core Viewpoint - The company reported its 2025 performance, showing mixed results with a slight decline in revenue but significant growth in adjusted net profit, primarily due to tax asset recognition. Financial Performance - The company achieved revenue of 7.759 billion RMB, a year-over-year decrease of 2.4%, compared to Bloomberg's consensus estimate of 7.913 billion RMB [1] - Gross profit reached 2.770 billion RMB, up 3.3% year-over-year, with a gross margin of 35.7%, slightly below the expected 36.4% [1] - Operating profit increased by 38.5% year-over-year to 1.622 billion RMB, attributed to reduced sales expenses [1] - Adjusted net profit attributable to shareholders was 2.860 billion RMB, a substantial increase of 68.2% year-over-year, mainly due to the recognition of deferred tax assets amounting to 747 million RMB [1] Revenue Breakdown - Online music service revenue was 5.994 billion RMB, reflecting a year-over-year growth of 12.0%, with subscription revenue increasing by 13.3% to 5.053 billion RMB [2] - Social entertainment services and other revenue fell by 32.0% to 1.765 billion RMB, primarily due to the closure of the live streaming entry after a version update at the end of 2024 [2] User Engagement - The platform's user base and activity levels showed year-over-year growth, maintaining a DAU/MAU ratio above 30%, with increased daily listening time on mobile [2] Content Strategy - The company is enhancing its content ecosystem through partnerships with domestic and international copyright holders, introducing K-POP labels and expanding its Chinese music library [2] - The independent musician ecosystem has grown to over 1 million registered musicians and over 5.6 million uploaded tracks, strengthening the platform's unique content supply [3] Innovation and Cost Management - The company launched the AI-based recommendation model "Climber" and introduced new features to enhance user experience, such as the "Shen Guang Player" and AI songwriting tools [3] - Sales expenses decreased by 33.2% to 409 million RMB, reflecting a more cautious approach to promotions and advertising [3] Future Outlook - The company plans to focus on expanding its membership base, leading to increased content production and marketing investments, with adjusted net profit forecasts for 2026 and 2027 revised down by 15% and 13% respectively [4] - The long-term profitability potential remains positive due to scale effects, maintaining a "buy" rating [4]

Core Viewpoint - NetEase Cloud Music reported a revenue of 7.759 billion yuan for 2025, slightly below Bloomberg's expectation of 7.9 billion yuan, with an adjusted net profit of 2.86 billion yuan, representing a year-on-year increase of 68.2% [1] Group 1: Financial Performance - The company's revenue for 2025 was 7.759 billion yuan, down 2.4% year-on-year [1] - Adjusted net profit was 2.86 billion yuan, with a one-time tax impact of 747 million yuan, leading to an adjusted profit of approximately 2.113 billion yuan, exceeding Bloomberg's expectation of 2 billion yuan [1] - The gross margin for 2025 increased by 2 percentage points to 35.7%, primarily due to a decrease in social entertainment revenue sharing and effective content cost control [1] Group 2: User Growth and Marketing Strategy - Online music revenue growth slowed slightly, with year-on-year growth rates of 15.9% and 8.3% for the first and second halves of 2025, respectively [1] - Membership subscription revenue grew by 15.2% and 11.6% in the first and second halves of 2025, with expectations of continued robust growth in subscription members [1] - The company plans to focus on expanding its member base by increasing marketing and content investment while optimizing channel discount strategies [1] Group 3: Future Projections and Ratings - The company maintains a "Buy" rating, with adjusted net profit estimates for 2026, 2027, and 2028 set at 2.239 billion, 2.520 billion, and 2.750 billion yuan, respectively, reflecting a downward adjustment of 16% for 2026 and 2027 [2] - A target price of 239.40 HKD is set based on a 20.71x PE for 2026, aligning with the average of comparable companies [2]

Investment Rating - The report maintains a "Buy" rating for NetEase Cloud Music [7] Core Insights - The company is enhancing collaboration with copyright holders to enrich audio content, resulting in a year-on-year increase in user scale and activity [3] - The report forecasts revenue growth for NetEase Cloud Music, with expected revenues of 84.3 billion, 92.1 billion, and 101.5 billion RMB for 2026, 2027, and 2028 respectively, reflecting year-on-year growth of +8.6%, +9.3%, and +10.1% [26] - Adjusted net profit is projected to be 22.6 billion, 26.1 billion, and 30.0 billion RMB for the same years, with a year-on-year change of -21.2%, +15.8%, and +14.4% [26] Financial Summary - Revenue for 2024 is projected at 7,950 million RMB, with a slight increase of 1.1% year-on-year, and expected to reach 10,145 million RMB by 2028, growing at a compound annual growth rate (CAGR) of 10.1% [5] - Gross profit is expected to rise from 2,682 million RMB in 2024 to 4,259 million RMB in 2028, with gross margin improving from 33.7% to 42.0% [5] - Adjusted net profit is anticipated to increase from 1,700 million RMB in 2024 to 2,987 million RMB in 2028, with a significant jump of 107.7% in 2025 [5] Business Performance - In the second half of 2025, the company achieved revenue of 39.3 billion RMB, a year-on-year increase of 1.4%, with a gross margin of 35.0%, up by 2.7 percentage points [26] - Online music revenue reached 30.3 billion RMB in the second half of 2025, growing by 8.3% year-on-year, with subscription revenue increasing by 11.6% to 25.8 billion RMB [26] - The company is focusing on high-quality development of its core music ecosystem, with user engagement metrics showing improvement [26] Market Data - The stock price range over the past 52 weeks is between 130.70 and 302.40 HKD, with a current market capitalization of 36,038 million HKD [8]

Core Viewpoint - NetEase Cloud Music (09899) announced a share buyback plan, indicating confidence in its stock value and future prospects [1] Group 1 - The company will repurchase 91,100 shares at a total cost of HKD 14.9931 million [1] - The buyback price per share ranges from HKD 159.8 to HKD 167.2 [1]

智通财经APP讯，网易云音乐(09899)发布公告，该公司于2026年2月12日斥资1499.31万港元回购9.11万 股股份，每股回购价格为159.8-167.2港元。 ...

格隆汇2月12日丨网易云音乐(09899.HK)公告，2月12日耗资1500万港元回购9.1万股。 ...

FF305 翌日披露報表 (股份發行人 ── 已發行股份或庫存股份變動、股份購回及/或在場内出售庫存股份) 表格類別： 股票 狀態： 新提交 公司名稱： 網易雲音樂股份有限公司 呈交日期： 2026年2月12日 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公司GEM證券 上市規則》(「《GEM上市規則》」)第17.27A條作出披露，必須填妥第一章節 。 | 第一章節 | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | 於香港聯交所上市 | 是 | | | 證券代號 (如上市) | 09899 | 說明 | | | | | | A. 已發行股份或庫存股份變動 | | | | | | | | | | | 已發行股份（不包括庫存股份）變動 | 庫存股份變動 | 每股發行/出售價 (註4) | 已發行股份總數 | | 事件 | | 已發行股份（不包括庫存股份）數 目 ...