Investment Rating - The report maintains a "Buy" rating for the company, indicating a strong performance expectation relative to the market [5][6]. Core Insights - The company has been included in the Hong Kong Stock Connect list, making it a rare online music investment option for domestic institutions, especially since Tencent Music is not included [5]. - The company reported a significant improvement in profitability, with a 166% year-over-year increase in adjusted net profit for the first half of 2024, reaching 880 million RMB [5]. - The online music segment saw a revenue increase of 27% year-over-year, driven by a 25%+ growth in monthly active paying users [5]. - The company is focusing on its core music content and has reduced its social entertainment business, leading to improved profitability metrics [5][6]. Financial Data and Earnings Forecast - The company achieved a revenue of 4.07 billion RMB in the first half of 2024, with a year-over-year growth of 4% [5]. - The adjusted net profit forecast for 2024-2026 has been revised upwards, with expected figures of 1.5 billion, 1.8 billion, and 2.0 billion RMB respectively [6]. - The projected price-to-earnings (PE) ratios for 2024-2026 are 12x, 10x, and 9x, respectively, indicating a favorable valuation compared to peers [6]. - The target price has been raised from 111 HKD to 116 HKD, reflecting a 28% upside potential [6].
云音乐：上半年盈利改善超预期，已入港股通