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]
大行评级丨瑞银：网易云音乐去年下半年核心音乐业务趋弱，仍予“买入”评级