Investment Rating - The report maintains a "Buy" rating for NetEase Cloud Music, with a target price updated to 312 HKD for 2026, based on a PE of 28X [5][25]. Core Insights - The company's subscription business is experiencing steady growth, significantly reducing promotional and advertising expenses. The financial structure is improving, and the trend towards commercialization is positive [3][11]. - The report highlights that the online music business is growing healthily, while the social entertainment segment is under pressure [21][25]. Financial Summary - Revenue projections for 2023A to 2027E are as follows: 7,867 million RMB in 2023, 7,950 million RMB in 2024, 7,902 million RMB in 2025, 8,649 million RMB in 2026, and 9,375 million RMB in 2027, with a growth rate of -12.5% in 2023 and a projected increase of 9.5% in 2026 [4][25]. - Gross profit is expected to rise from 2,103 million RMB in 2023A to 3,807 million RMB in 2027E, with gross margin improving from 26.7% to 40.6% over the same period [4][25]. - Adjusted net profit is forecasted to be 819 million RMB in 2023, increasing to 2,458 million RMB by 2027, with a significant jump of 107.7% in 2024 [4][25]. Business Performance Overview - In the first half of 2025, the company achieved a revenue of 38.3 billion RMB, a year-on-year decrease of 6.0%. The gross margin was 36.4%, reflecting a year-on-year increase of 1.4 percentage points [25]. - Online music revenue reached 29.7 billion RMB, up 15.9% year-on-year, with subscription revenue growing by 15.2% to 24.7 billion RMB [21][25]. - The social entertainment and other business revenues faced a decline of 43.1% year-on-year, totaling 8.6 billion RMB [21][25]. User Engagement and Community Growth - The report notes a steady increase in monthly active users, with improvements in user engagement metrics such as DAU/MAU ratios and listening duration [25]. - As of June 2025, the platform has over 819,000 registered independent musicians, contributing approximately 4.8 million music tracks [25]. Profitability Forecast and Investment Recommendations - The adjusted net profit for 2025-2027 is projected at 27.58 billion RMB, 22.22 billion RMB, and 24.58 billion RMB, respectively, indicating a growth of 62.3% in 2025, followed by a decline of 19.5% in 2026, and a recovery of 10.6% in 2027 [25]. - The report emphasizes the high entry barriers in the online music service industry and the stable competitive landscape, suggesting significant potential for profitability improvement for NetEase Cloud Music [25].

Investment Rating - The report initiates coverage with a "Buy" rating for the company [9]. Core Views - The company has demonstrated a significant increase in online music service revenue, with a 15.9% year-on-year growth, contributing to a net profit of 18.85 billion yuan in H1 2025, which is a 132.8% increase compared to the previous year [2][3]. - The company is focusing on enhancing its content ecosystem and user experience, while also exploring innovative product features and expanding music consumption scenarios [3]. Financial Summary - In H1 2025, the company achieved a revenue of 38.27 billion yuan, a decrease of 6.0% year-on-year, primarily due to a decline in social entertainment service revenue [2]. - The operating profit for H1 2025 was 8.45 billion yuan, showing a substantial increase, attributed to reduced promotional and advertising expenses [2]. - The gross margin improved to 36.4%, reflecting a 1.4% increase year-on-year [2]. - The company expects EPS for 2025-2027 to be 12.70, 10.31, and 12.13 yuan respectively, with corresponding P/E ratios of 20X, 24X, and 20X [3][4]. Market Data - The target price for the stock is set at 317.8 HKD, with the current closing price at 270.20 HKD [5]. - The stock has shown a 199% absolute return over the past 12 months [6].

Investment Rating - The investment rating for NetEase Cloud Music (09899.HK) is "Buy" (maintained) [4][11]. Core Insights - The report highlights that NetEase Cloud Music continues to experience high growth, driven by an expansion of its music library and optimization of its ecosystem [4]. - In H1 2025, the company achieved operating revenue of 3.83 billion yuan (down 6% year-on-year), with a net profit attributable to shareholders of 1.89 billion yuan (up 132.8% year-on-year) [4]. - The adjusted operating profit was 910 million yuan (up 35% year-on-year), and the adjusted net profit was 1.95 billion yuan (up 121% year-on-year) [4]. - The gross margin improved to 36.4% compared to 35% in H1 2024, primarily due to the recognition of deferred tax credits and reduced advertising expenses [4]. Revenue and Profitability - Online music revenue for H1 2025 was 2.97 billion yuan (up 15.9% year-on-year), with subscription service revenue at 2.47 billion yuan (up 15.2% year-on-year) [5]. - The company is focusing on enhancing its core music monetization capabilities, leading to stable growth in monthly active users and paying users [5]. - The report projects net profits for 2025-2027 to be 2.95 billion, 2.45 billion, and 2.95 billion yuan respectively, with corresponding P/E ratios of 18.2, 21.9, and 18.3 times [4]. Music Library and User Experience - The company is continuously expanding its music copyright, having established agreements with popular K-Pop labels and focusing on various music genres [6]. - As of June 2025, the platform had 819,000 registered independent musicians (up 11.9% year-on-year) and approximately 4.8 million uploaded tracks (up 33.3% year-on-year) [6]. - The introduction of innovative features and a streamlined app interface has received positive feedback from users, potentially enhancing user engagement and monetization opportunities [6].

证券研究报告 港股通 网易云音乐 (9899 HK) 盈利超预期，经营杠杆持续释放 2025 年 8 月 15 日│中国香港 互联网 | 华泰研究 | | 中报点评 | 投资评级(维持): | 买入 | | --- | --- | --- | --- | --- | | 2025 年 8 月 | 15 日│中国香港 | 互联网 | 目标价(港币): | 360.42 | | | | | 夏路路 | 研究员 | SAC No. S0570523100002 SFC No. BTP154 +(852) 3658 6000 詹博 研究员 zhanbo@htsc.com SAC No. S0570523110002 SFC No. BUS698 郑裕佳 研究员 SAC No. S0570524070002 SFC No. BTB676 zhengyujia@htsc.com +(86) 10 6321 1166 基本数据 | 目标价 (港币) | 360.42 | | --- | --- | | 收盘价 (港币 截至 8 月 14 日) | 270.20 | | 市值 (港币百万) | 58,849 | | 6 个月 ...

Core Viewpoint - NetEase Cloud Music (09899) experienced a stock price increase of over 5%, reaching HKD 284 with a trading volume of HKD 174 million following the release of its interim results for the six months ending June 30, 2025 [1] Financial Performance - The company reported revenue of RMB 3.827 billion for the interim period [1] - Profit attributable to equity holders reached RMB 1.885 billion, marking a year-on-year increase of 132.83% [1] - Basic earnings per share were RMB 8.96, with adjusted net profit at RMB 1.946 billion, reflecting a year-on-year increase of 120.99% [1] - The gross margin for the first half of the year was 36.4%, the highest for the company during the same period historically [1] Business Segments - Online music service revenue amounted to RMB 2.97 billion, showing a year-on-year growth of 15.9% [1] - Monthly active users continued to grow steadily, with the daily active users to monthly active users ratio remaining above 30% [1] - Revenue from subscription services increased from RMB 2.14 billion in the first half of 2024 to RMB 2.47 billion in the current half, representing a growth of 15.2% [1]

Core Viewpoint - NetEase Cloud Music (09899) experienced a stock price increase of over 5%, reaching 284 HKD with a trading volume of 174 million HKD following the release of its interim results for the six months ending June 30, 2025 [1] Financial Performance - The company reported a revenue of 3.827 billion RMB for the interim period [1] - Profit attributable to equity holders reached 1.885 billion RMB, marking a year-on-year increase of 132.83% [1] - Basic earnings per share were 8.96 RMB, with adjusted net profit at 1.946 billion RMB, reflecting a year-on-year increase of 120.99% [1] - The gross margin for the first half of the year was 36.4%, the highest for the company during the same period historically [1] Business Segments - Online music services generated revenue of 2.97 billion RMB, showing a year-on-year growth of 15.9% [1] - Monthly active users continued to grow steadily, with the daily active users to monthly active users ratio remaining above 30% [1] - Revenue from subscription services increased from 2.14 billion RMB in the first half of 2024 to 2.47 billion RMB in the current year, representing a growth of 15.2% [1]

来源：金融界 2025年上半年，会员订阅收入同比增长15.2%，集团的毛利率于2025年上半年达到36.4%，相较2024年 同期显着提升。 8月14日消息，网易云音乐发布截至2025年6月30日止6个月的中期业绩，该集团取得收入人民币38.27亿 元;公司权益持有人期内利润18.85亿元，同比增加132.83%;每股基本盈利8.96元;经调整净利润19.46亿 元，同比增加120.99%。 在线音乐服务收入由截至2024年6月30日止6个月的人民币25.6亿元增加15.9%至截至2025年6月30日止6 个月的人民币29.67亿元。会员订阅服务收入由截至2024年6月30日止6个月的人民币21.44亿元增加至截 至2025年6月30日止6个月的人民币24.7亿元。每月活跃用户总数保持稳定增长势头。 ...

Group 1: NetEase Cloud Music - NetEase Cloud Music reported revenue of 3.827 billion yuan for the first half of 2025, showing a slight year-on-year decline; operating profit increased by 40.8% to 845 million yuan [1] - The company launched new product features such as "Little Light Bulb," "DeepSeek," and "Shen Guang Mode" player, which contributed to increased user activity and listening duration on the app [1] - Profit growth significantly outpaced revenue decline, indicating effective cost optimization and membership price increases; continued innovation and expansion into advertising and live streaming could enhance profitability in the second half of the year [1] Group 2: Guangzhou East Station - Guangzhou East Station has stopped selling instant noodles to maintain hygiene standards, replacing them with mixed noodles and providing hot water [2] - The station's response aligns with national railway regulations aimed at improving the cleanliness of high-speed train environments, allowing passengers to bring their own instant noodles [2] - The shift in food offerings may benefit suppliers of mixed noodles and cold chain boxed meals if implemented nationwide, while instant noodle companies may need to rely on campus and e-commerce sales [2] Group 3: Walmart - Walmart expanded its employee discount program to include a 10% discount on nearly all grocery items year-round, aimed at alleviating rising food costs and improving employee retention [3] - Approximately 1.6 million employees will benefit from this program after 90 days of employment, although clearance items are excluded [3] - The enhancement of employee benefits is expected to reduce turnover rates and improve operational efficiency during peak retail seasons, though the company has not disclosed the estimated costs of this expanded discount [3] Group 4: Ganyuan Foods - Ganyuan Foods indicated strong market potential for several of its products and plans to actively communicate with various channels for new product collaborations [4] - E-commerce remains a crucial sales channel for the company, with expectations for continued growth and penetration of new products in the online market [4] - The dual strategy of new product development and channel expansion is likely to increase the proportion of e-commerce revenue, with a focus on controlling promotional expenses to enhance profitability [4]

Group 1: NetEase Cloud Music - NetEase Cloud Music reported a revenue of 3.827 billion yuan for the first half of 2025, showing a slight year-on-year decline [1] - Operating profit reached 845 million yuan, representing a year-on-year growth of 40.8% [1] - The introduction of new features such as "Little Light Bulb" and "DeepSeek" has led to increased user engagement and listening duration on the app [1] - The profit growth significantly outpaced revenue, indicating effective cost optimization and membership price increases [1] - Continued innovation and expansion into advertising and live streaming could enhance profitability in the second half of the year [1] Group 2: Walmart - Walmart announced an expansion of employee shopping discounts to 10% on nearly all grocery items, aimed at alleviating rising food costs for employees [2] - This benefit will be available year-round and is expected to improve employee recruitment and retention [2] - Approximately 1.6 million employees will be eligible for this benefit after 90 days of employment, excluding clearance items [2] - The upgrade in employee benefits is likely to reduce turnover rates and enhance operational efficiency during peak retail seasons [2] - Walmart has not disclosed the estimated costs of this expanded discount, which could impact food business profit margins if the scale is significant [2] Group 3: Ganyuan Foods - Ganyuan Foods indicated stable partnerships with major domestic channels and identified significant market potential for several products [3] - The company plans to actively communicate with various channels for new product collaborations while promoting innovative and cost-effective products [3] - E-commerce remains a crucial sales channel, with expectations for continued growth and penetration of new products [3] - The company aims to enhance online business development, increase influencer collaboration, and improve coverage in new media channels [3] - Successful product launches and controlled promotional expenses could lead to improved profitability [3]

Group 1: NetEase Cloud Music - NetEase Cloud Music reported a revenue of 3.827 billion yuan for the first half of 2025, showing a slight year-on-year decline; however, operating profit increased by 40.8% to 845 million yuan [1] - The company launched new product features such as "Little Light Bulb," "DeepSeek Sharp Review Playlist," and "Shen Guang Mode Player," which contributed to increased user engagement and app listening duration [1] - Profit growth significantly outpaced revenue, indicating successful membership price increases and cost optimization; continued innovation and expansion into advertising and live streaming could enhance profitability in the second half of the year [1] Group 2: Guangzhou East Station - Guangzhou East Station has ceased the sale of traditional instant noodles, replacing them with mixed noodles, while still providing a variety of dining options for passengers [2] - The decision aligns with national railway regulations aimed at maintaining hygiene standards in high-speed train stations, as instant noodles are considered to potentially impact cleanliness [2] - The shift to mixed noodles may benefit suppliers of ready-to-eat mixed noodles and cold chain boxed meals if implemented nationwide, while instant noodle companies may need to rely on campus and e-commerce channels [2] Group 3: Walmart - Walmart has expanded its employee discount program to include a 10% discount on nearly all grocery items year-round, aimed at alleviating rising food costs for employees and improving recruitment and retention [3] - Approximately 1.6 million employees will be eligible for this benefit after 90 days of employment, excluding clearance items [3] - While the upgrade in employee benefits may reduce living costs and enhance service stability, the lack of disclosure regarding the cost implications of the expanded discounts raises concerns about potential impacts on food business profit margins [3] Group 4: Ganyuan Foods - Ganyuan Foods indicated that it has established stable partnerships with major domestic channels and sees significant market potential for several of its products, focusing on innovation and high-cost performance [4] - The company views e-commerce as a crucial sales channel with ongoing growth potential for new product penetration, planning to enhance online business development and increase collaboration with influencers and new media channels [4] - The dual strategy of new products and channel expansion is expected to boost Ganyuan Foods' e-commerce revenue share, with attention needed on new product sales and promotion cost management for potential profitability [4]