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 ...

Investment Rating - The report maintains a "Buy" rating for NetEase Cloud Music (9899.HK) [5] Core Insights - The company reported 2025 revenue of RMB 7.759 billion, slightly below Bloomberg consensus of RMB 7.913 billion, with a year-over-year decline of 2.4% [1] - Gross profit reached RMB 2.770 billion, a 3.3% increase year-over-year, with a gross margin of 35.7%, slightly below the expected 36.4% [1] - Adjusted net profit attributable to shareholders was RMB 2.860 billion, a significant increase of 68.2% year-over-year, primarily due to the recognition of deferred tax assets [1] - The company is focusing on expanding its differentiated content ecosystem and enhancing product innovation through AI [3] Revenue and Profitability - Online music service revenue was RMB 5.994 billion, up 12.0% year-over-year, with subscription revenue increasing by 13.3% to RMB 5.053 billion [2] - Social entertainment services and other revenue decreased by 32.0% to RMB 1.765 billion, mainly due to the closure of the live streaming feature [2] - The company has seen growth in user scale and engagement, maintaining a DAU/MAU ratio above 30% [2] Content Strategy and Innovation - The company continues to strengthen its differentiated content ecosystem by deepening partnerships with domestic and international copyright holders, introducing K-POP labels, and enhancing its original content offerings [3] - The independent musician ecosystem has grown to over 1 million registered musicians, with more than 5.6 million tracks uploaded [3] - AI-driven product innovations, such as the Climber recommendation model and various interactive tools, have improved user experience [3] Cost Management - Sales expenses decreased by 33.2% to RMB 409 million, reflecting a more prudent approach to advertising and promotion [4] - Management and R&D expenses also saw slight reductions, contributing to overall cost control [4] Financial Forecasts - The adjusted net profit forecasts for 2026 and 2027 have been revised down to RMB 2.210 billion and RMB 2.467 billion, respectively, reflecting a 15% and 13% decrease from previous estimates [4] - The report anticipates a long-term improvement in profitability due to scale effects [4]

Core Viewpoint - UBS reports that NetEase Cloud Music's revenue for the second half of 2025 is expected to grow by 1.4% year-on-year to 3.932 billion yuan, which is lower than both the bank's and market expectations by 4% and 2.3% respectively [1] Financial Performance - Gross profit is projected to be 1.377 billion yuan, with a gross margin of 35%, both lower than the bank's and market expectations [1] - Non-GAAP operating profit is expected to be 828 million yuan, which is 1.9% higher than the bank's forecast due to strict cost control measures [1] Segment Analysis - Revenue from the online music business is anticipated to increase by 8% year-on-year to 3.027 billion yuan, which is lower than the bank's expectations by 6% and 4.7% [1] Market Outlook - The bank anticipates that the market's weakening outlook on NetEase Cloud Music's core music business will have negative repercussions, although recent stock price movements may have already reflected this [1] - Investor focus will be on strategies to drive music user base growth and average revenue per paying user, profit outlook, and the latest developments in the competitive landscape [1] Investment Rating - The bank sets a target price of 350 HKD for NetEase's stock and maintains a "Buy" rating [1]

Core Insights - NetEase Cloud Music reported an annual revenue of RMB 7.76 billion for the year ending December 31, 2025, with a slight increase of RMB 881 million compared to the previous year [1] - The gross profit for 2025 reached RMB 2.77 billion, with a gross margin improvement from 33.7% to 35.7% [1] - Operating profit for 2025 was RMB 1.622 billion, representing a year-on-year increase of 38.5% from RMB 1.171 billion in 2024 [1] Revenue Breakdown - Online music service revenue for 2025 was RMB 5.99 billion, showing a year-on-year growth of 12.0% [1] - Membership subscription revenue reached RMB 5.05 billion, with a year-on-year increase of 13.3% [1] User Engagement - The ratio of daily active users to monthly active users remained above 30%, showing steady improvement compared to 2024 [1] - By the end of 2025, the number of original music creators on the platform exceeded 1 million, with over 5.6 million music tracks uploaded [1] Profitability - Net profit for 2025 was RMB 2.746 billion, up from RMB 1.565 billion in 2024 [1] - The company recognized a deferred income tax benefit of RMB 747 million in 2025 [1] - Adjusted net profit for 2025, excluding the impact of equity settlement, was RMB 2.86 billion, compared to RMB 1.7 billion in 2024 [1]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 239.40 [2][9][12] Core Insights - The company reported a revenue of RMB 7.759 billion for 2025, a slight decrease of 2.4% year-over-year, which was below Bloomberg's expectation of RMB 7.9 billion. However, the adjusted net profit was RMB 2.86 billion, reflecting a significant year-over-year increase of 68.2% [6][8] - The company plans to increase customer acquisition efforts in 2026, focusing on expanding its paid user base and improving gross margins through enhanced operational efficiency [6][7] - The adjusted net profit forecast for 2026 and 2027 has been revised down to RMB 22.39 billion and RMB 25.20 billion, respectively, reflecting a 16% reduction in expectations [9][12] Financial Performance Summary - Revenue projections for the upcoming years are as follows: RMB 8.619 billion in 2026, RMB 9.339 billion in 2027, and RMB 10.038 billion in 2028, with growth rates of 11.08%, 8.35%, and 7.48% respectively [5][12] - The adjusted net profit for 2026 is projected at RMB 2.239 billion, with an adjusted EPS of RMB 10.27, and a PE ratio of 20.71x [12][14] - The company’s gross margin improved by 2 percentage points to 35.7% in 2025, attributed to a decrease in revenue sharing costs and effective content licensing cost control [8][9] Market Position and Strategy - The company is focusing on the younger demographic passionate about music, aiming to expand its membership base through increased marketing and content production investments [7][9] - The report indicates that the company will continue to optimize promotional expenses, which decreased by 43% year-over-year, contributing to a 33.2% reduction in overall sales expenses [8][9]

Market Overview - The Hong Kong stock market opened slightly lower, with the Hang Seng Index down 0.2% at 27,210.56 points, the Hang Seng Tech Index down 0.47% at 5,474.25 points, and the National Enterprises Index down 0.19% at 9,250.27 points [1] - Major tech stocks mostly opened lower, with Alibaba down 1.37%, Tencent down 2.01%, and Meituan down 2.48%, while AI application stocks showed strength, with Zhihui up 8.77% and MINIMAX-WP up 5.65% [1] Company Performance - NetEase reported strong performance, with a net revenue of approximately 112.63 billion yuan, a year-on-year increase of 6.96%, and a net profit of approximately 33.76 billion yuan, up 13.68% [2] - NetEase Cloud Music saw a significant profit increase of 75.4%, with a revenue of 7.76 billion yuan and a profit of 2.75 billion yuan, confirming a turning point in performance [2] Industry Trends - The hard technology and manufacturing sectors showed signs of recovery, with Qiu Tai Technology reporting a 22.8% year-on-year increase in camera module sales and an 18.4% increase in fingerprint recognition module sales, driven by demand in IoT and smart automotive sectors [3] - The renewable energy sector also saw growth, with China Resources Power reporting a 28.4% year-on-year increase in electricity sales, and solar power sales soaring by 72.3% [3] Biopharmaceutical Sector - The biopharmaceutical sector experienced significant positive developments, with Rebio Biotech announcing a global exclusive licensing agreement worth up to 4.4 billion USD, leading to a substantial increase in stock price [4] - Heng Rui Pharmaceutical's product was included in a breakthrough therapy list, with projected global sales exceeding 6.5 billion USD in 2024 [4] Capital Market Activity - Industrial capital is actively engaging in buybacks to stabilize the market, with Geely Automobile repurchasing shares worth approximately 20.30 million HKD and other companies like Kingsoft and Bai Rong Cloud also participating in buybacks [5] - Huili Group is expected to see a profit increase of over 20 times in 2025, indicating a strong performance reversal [5] Institutional Insights - There is a divergence in institutional views regarding market fluctuations, with some suggesting that the recent pullback is a liquidity shock, while others believe that valuation recovery is nearly complete [6] - Specific sectors like AI computing and surgical robots are highlighted for potential growth, with expectations for high performance in 2025 and 2026 [6]