Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company has demonstrated continuous improvement in gross margin, leading to enhanced profitability, and is now on a fast track for profit growth [6] - The company achieved total revenue of 7.939 billion (RMB) in 2023, a year-on-year decrease of 11.75%, primarily due to a cautious operational strategy that reduced live streaming displays and lowered revenue sharing ratios [6] - The net profit attributable to shareholders for 2023 was 734 million (RMB), compared to a loss of 221 million (RMB) in 2022, with a gross margin of 26.7%, up 12.4 percentage points year-on-year [6] - The increase in gross margin is attributed to the rise in online music service revenue share from 41% in 2022 to 55% in 2023, along with improvements in copyright cost structure and revenue sharing ratios [6] - The company is expected to continue its profitability improvement, with net profit forecasts for 2024, 2025, and 2026 at 1.008 billion, 1.281 billion, and 1.444 billion (RMB) respectively [6] Summary by Sections Financial Performance - In 2023, the company reported total revenue of 7.939 billion (RMB), down 11.75% year-on-year, while net profit was 734 million (RMB), a significant recovery from a loss of 221 million (RMB) in 2022 [6] - The gross margin improved to 26.7%, and the net margin reached 9.3%, reflecting a year-on-year increase of 12.4 percentage points and 11.7 percentage points respectively [6] User Growth and Engagement - The company’s online music platform reached 206 million monthly active users in 2023, an increase of 8.7% year-on-year, with a daily active to monthly active user ratio exceeding 30% [7] - The number of independent musicians on the platform grew to 684,000, up 11.9% year-on-year, and the online music service membership reached 44.12 million, a 15% increase [7] Technological Advancements - The company is accelerating the application of AI technology in music production and consumption, with a one-stop AI music creation tool developed by its AI music lab [8] - The expansion into multiple consumption scenarios aims to enhance music monetization opportunities, leveraging AI to reduce content costs and broaden content supply [8]
港股公司信息更新报告：毛利率提升再获验证，公司进入盈利增长快车道