NETEASE CLOUD MUSIC(9899.HK)：LARGELY INLINE 2H25;COMMITTED CORE MUSIC STRATEGIC EXECUTIONS

Largely inline 2H25. Total revenue grew moderately at 1% YoY to RMB3.9bn, -1% below consensus. Online music services revenue delivered 8% YoY, -4% lagging streets' expectation, contributed by solid 12% YoY core subs while -7% YoY music non-subs. Social revenue returned to +5% HoH while still dropping by -17% YoY. Adj. NPM was 23.4%, in-line with consensus despite underperformed 35.0% GPM. Key Risks for Rating Downside risks: i) deteriorated content supply; ii) dampened copyright partners; iii) ineffective m ...