Investment Rating - The report maintains a "Buy" rating for the company [2][5][6] Core Insights - The company achieved a revenue of 7.87 billion RMB in 2023, a year-over-year decrease of 13%, but the Non-IFRS net profit turned positive at 820 million RMB compared to a loss of 115 million RMB in 2022, indicating a significant recovery [5][6] - The online music segment saw a revenue increase of 18% year-over-year, reaching 4.4 billion RMB, driven by a 15% growth in paid users to 44.12 million, resulting in a paid user rate of 21.4% [5][6] - The company is refocusing on its core online music business, with a major app redesign planned for 2024 to enhance music discovery and community engagement [5][6] Financial Performance and Forecast - The comprehensive gross margin improved to 26.7% in 2023, with a notable increase to 28.7% in the second half of the year, attributed to reduced live streaming revenue sharing and scale effects from online music growth [6][7] - Revenue forecasts for 2024 and 2025 have been adjusted to 8.1 billion RMB and 9 billion RMB respectively, down from previous estimates of 12.9 billion RMB and 14.2 billion RMB, while Non-IFRS net profit forecasts have been raised to 940 million RMB and 1.14 billion RMB for the same years [6][7] - The target price is set at 111 HKD, reflecting a 22% upside potential from the current price [6][7]
2023盈利改善超预期，重新聚焦在线音乐