Core Viewpoint - Goldman Sachs has raised the target price for Angelalign Technology (06699) from HKD 78.8 to HKD 81.3, maintaining a "Buy" rating based on the Sum of the Parts (SOTP) valuation method [1] Financial Performance - Angelalign's revenue for the first half reached USD 161 million, representing a year-on-year increase of 33%, exceeding Goldman Sachs' expectations, primarily driven by rapid expansion in overseas markets [1] - The gross margin remained stable at 62.4%, unchanged from the same period last year, while the overseas gross margin improved from 58.3% in the previous year to 61.2% [1] Strategic Outlook - The management has raised the annual case volume guidance to between 490,000 and 500,000, indicating a year-on-year growth of 36% to 39% [1]

Core Insights - NetEase Cloud Music's performance in the first half of the year exceeded expectations, with online music service revenue reaching 2.97 billion yuan, a year-on-year increase of 16%, accounting for 78% of total revenue [1] - Gross margin improved by 1.4 percentage points year-on-year to 36.4%, surpassing market expectations of 34.1% [1] - Core operating profit grew by 35% year-on-year to 905 million yuan, exceeding market expectations by 40% [1] - The company ended the period with a net cash reserve of 12.4 billion yuan [1] Future Outlook - The firm anticipates a 17% year-on-year growth in online music business for the second half of the year, effectively offsetting revenue declines in the social entertainment segment, leading to an overall revenue growth of 5% year-on-year for the group [1] - Due to expected weakness in the social entertainment business, revenue forecasts for fiscal years 2025 and 2026 have been revised down by 4% to 5% [1] - However, benefiting from improved profit margins due to cost control, core operating profit forecasts have been raised by 25% and 23% respectively [1] Valuation and Ratings - Based on the sum-of-the-parts valuation method, the target price for NetEase Cloud Music has been significantly raised from 208 HKD to 330 HKD, with a rating of "Buy" [1] - Additionally, another major bank, Jiangyin International, has also raised its target price for NetEase Cloud Music to 339 HKD while maintaining a "Buy" rating [2]