Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 133.85, equivalent to RMB 121.47 [5][3]. Core Insights - The company's revenue for H2 2023 is projected at RMB 3.96 billion, reflecting a year-over-year decline of 16% but a slight increase of 1% compared to the previous half [2]. - The gross margin for H2 2023 is expected to be 28.7%, an increase of 13 percentage points year-over-year, primarily due to increased membership revenue diluting copyright costs [2]. - The net profit attributable to the parent company for H2 2023 is projected at RMB 440 million, showing a significant year-over-year increase of 793% [2]. - Online music revenue for H2 2023 is expected to reach RMB 2.32 billion, a year-over-year increase of 22%, driven by enhancements in the music library and copyright agreements with top labels [2]. - Social entertainment revenue for H2 2023 is projected at RMB 1.63 billion, a decline of 42% year-over-year, attributed to a more cautious operational strategy by management [2]. Financial Summary - The company’s projected net profits for 2023, 2024, and 2025 are RMB 734 million, RMB 1.036 billion, and RMB 1.521 billion respectively, reflecting significant growth from previous estimates [3]. - The expected revenue for 2023 is RMB 7.939 billion, with a projected decline of 11.7% year-over-year, followed by a slight recovery in 2024 [3]. - The gross margin is expected to improve from 26.7% in 2023 to 31.6% in 2024 and 35.4% in 2025, indicating a positive trend in profitability [3][9].
23H2财报点评：音乐付费持续增长，会员成为利润引擎