Core Points - NetEase Cloud Music has officially stated that it does not have a "visitor record" feature, ensuring that user interactions such as visiting user or artist profiles do not generate any visitor records [2][5] - The platform emphasizes its commitment to user privacy and security, adhering to principles of "user awareness, user consent, and minimum necessity" in its privacy protection policies [5] - Previous user inquiries about a potential visitor record feature have been noted, with the company indicating that any related functionalities are still under evaluation and not currently available [5]

Core Points - NetEase Cloud Music emphasizes that it does not have a "visitor record" feature, ensuring user privacy when browsing others' profiles [1][3] - The platform reassures users that actions such as visiting user or artist profiles do not generate visitor records or any other form of tracking [3] - NetEase Cloud Music prioritizes user privacy and adheres to principles of "user awareness, user consent, and minimum necessity" in its privacy protection policies [3] User Privacy Assurance - The company highlights its commitment to safeguarding user privacy and will not disclose any personal information without authorization [3] - Users are encouraged to provide feedback and suggestions to enhance their experience on the platform [3]

Group 1 - The core point of the article is that NetEase Cloud Music officially stated it does not have a "visitor record" feature, ensuring user privacy and security [1][2] - Users can visit profiles and music artist pages without generating any visitor records or other forms of tracking [1][2] - The platform emphasizes its commitment to user privacy, adhering to principles of user awareness, consent, and minimal necessity in data protection [2] Group 2 - There was a public inquiry on social media regarding the potential introduction of a visitor record feature on NetEase Cloud Music, which sparked significant attention [2] - In March 2024, a user raised a question about a small eye icon on the dynamic sharing page, which led to further speculation about visitor records [2] - A customer service representative from NetEase Cloud Music acknowledged the inquiry and mentioned that a small-scale test for dynamic reading volume had been completed, but it would not be displayed [2]

Core Viewpoint - NetEase Cloud Music emphasizes that it does not have a "visitor record" feature, ensuring user privacy and data protection [1] Group 1 - NetEase Cloud Music clarifies that actions such as visiting user profiles or musician pages do not generate visitor records [1] - The platform prioritizes user privacy and adheres to the principles of "user awareness, user consent, and minimum necessity" in its privacy protection policies [1] - The company will not disclose any personal information without authorization [1]

Core Viewpoint - Daiwa's report indicates that NetEase Cloud Music (09899) is expected to outperform in the first half of 2025, driven by a one-time tax benefit and improved operating profit margins [1] Financial Performance - The company's gross margin for online music services is anticipated to exceed expectations, alongside lower-than-expected marketing expenses [1] - Daiwa has raised its net profit forecasts for the next two years by 117% and 42% respectively [1] Rating and Target Price - Daiwa maintains a "Outperform" rating for NetEase Cloud Music, increasing the target price from 105 HKD to 310 HKD [1] - The new target price corresponds to a 27 times earnings forecast for 2026 [1]

Core Viewpoint - Daiwa's report indicates that NetEase Cloud Music (09899) exceeded profit expectations for the first half of 2025, primarily driven by a one-time tax benefit and improved operating profit margins [1] Group 1: Financial Performance - The company is expected to see a growth in gross margin for online music services, surpassing previous expectations [1] - Daiwa has raised its net profit forecasts for the next two years by 117% and 42% respectively [1] Group 2: Ratings and Price Target - Daiwa maintains a "Outperform" rating for NetEase Cloud Music [1] - The target price has been increased from HKD 105 to HKD 310, which corresponds to a 27 times earnings forecast for 2026 [1]

Core Viewpoint - NetEase Cloud Music's profitability exceeded expectations in the first half of the year, primarily due to a one-time tax benefit and an increase in operating profit margin [2] Revenue Forecast - Daiwa has lowered NetEase Cloud Music's revenue forecasts for the next two years by 11% and 10.9% respectively, due to the company's reduced investment in non-strategic live streaming business [2] Profit Forecast - Despite the revenue forecast adjustments, Daiwa has raised the net profit predictions for the next two years by 117% and 42% respectively, driven by anticipated growth in online music service gross margins and lower-than-expected marketing expenses [2] Rating and Target Price - Daiwa reiterated its "Outperform" rating for NetEase Cloud Music and raised the target price from HKD 105 to HKD 310 [2]

Core Viewpoint - Daiwa's report indicates that NetEase Cloud Music's profitability in the first half of the year exceeded expectations, primarily driven by a one-time tax benefit and improved operating profit margins [1] Revenue Forecast - The company has reduced its revenue forecasts for NetEase Cloud Music by 11% and 10.9% for the next two years due to a decreased focus on non-strategic live streaming business [1] Profitability Outlook - Despite the revenue forecast reduction, Daiwa has raised its net profit predictions for the next two years by 117% and 42%, citing anticipated growth in gross margins for online music services and lower-than-expected marketing expenses [1] Rating and Target Price - Daiwa maintains a "Outperform" rating for NetEase Cloud Music, increasing the target price from HKD 105 to HKD 310, which corresponds to a 27 times earnings forecast for 2026 [1]

Macro Insights - The economic growth rate in August is expected to be supported by exports and consumption policies, despite a significant slowdown in the real estate sector, with a target of 5% annual growth remaining achievable [1][15][12] - The industrial added value in July grew by 5.7% year-on-year, with the manufacturing sector showing resilience, particularly in high-tech products and equipment manufacturing [12][13] - Fixed asset investment growth slowed to 1.6% year-on-year in the first seven months, primarily due to a decline in real estate investment, which fell by 12% [13][14] Strategy Insights - Current channels for resident capital entering the market include increasing financing balances and active personal investor accounts, leading to a positive feedback loop in the market [2] - The "anti-involution" market trend can be analyzed through policy expectations and real-world transmission, indicating a shift from theme-driven to profit-driven market dynamics [2] - The technology and small-cap sectors are expected to continue outperforming as more external funds enter the market [2] Industry Reports - The consumer electronics sector is anticipated to see significant opportunities with the upcoming release of new products, particularly in AI-related applications [8] - The coal mining industry is experiencing a continuous improvement in fundamentals, with the price of thermal coal expected to rise [8] - The healthcare sector, particularly innovative drugs, is projected to maintain a positive outlook due to improved profitability [8]

Core Viewpoint - The online music industry is becoming a profitable business, with significant revenue growth reported by major players like Tencent Music and NetEase Cloud Music, driven by improved copyright management and user payment habits [1][3][6]. Financial Performance - Tencent Music reported total revenue of 8.44 billion yuan for Q2 2025, a year-on-year increase of 17.9%, with online music service revenue growing by 26.4% to 6.85 billion yuan [1]. - NetEase Cloud Music's revenue for the first half of 2025 was 3.827 billion yuan, a decrease of 6% from the previous year, but online music service revenue increased by 15.9% to 2.967 billion yuan [1]. - Tencent Music's adjusted net profit for the quarter was 2.64 billion yuan, up 33% year-on-year [1]. Market Dynamics - Online music services now account for 80% of Tencent Music's total revenue and 77.5% of NetEase Cloud Music's total revenue, a significant shift from 2018 when these figures were much lower [2]. - The competitive landscape has evolved, with Tencent Music and NetEase Cloud Music now focusing on online music services rather than social entertainment services, which previously dominated their revenue streams [2][3]. Copyright Management - The decline of music piracy in China, from 95% to below 5%, has been pivotal in the growth of the digital music industry, leading to a "copyright accumulation competition" among platforms [4]. - Tencent Music has secured exclusive rights to a significant portion of the music library, forcing competitors like NetEase Cloud Music to pay high prices for licensing [4][5]. - The copyright wars have driven up the prices of music rights, but they have also fostered a culture of paid subscriptions among users [6][7]. User Engagement and Payment Models - Tencent Music's online music subscription revenue reached 4.38 billion yuan in Q2 2023, with a 17.1% year-on-year growth, and the number of paying users increased to 124 million [7]. - NetEase Cloud Music's subscription revenue grew to 2.47 billion yuan, a 15.2% increase [7]. - The platforms have developed a tiered subscription model to enhance user engagement and payment rates, effectively turning music into a sustainable profit-generating business [7]. Competitive Landscape - The rise of new players like "Soda Music" and "Tomato Listening" is challenging the dominance of Tencent Music and NetEase Cloud Music, leveraging lower subscription fees and algorithm-driven user engagement [14][15]. - The competition is intensifying as these new entrants utilize short video platforms to attract users, creating a potential shift in the market dynamics [14][17]. - The future of the online music industry may evolve into a three-way competition, with Tencent Music, NetEase Cloud Music, and new entrants vying for market share [17].