CMB International: Maintains "buy" rating on NETEASE MUSIC (09899) and raises target price to HK$202.5.

Zhaojin International released a research report, maintaining a "buy" rating on NetEase Music (09899) with a target price raised from HK$115 to HK$202.5. Based on rigorous cost control and robust gross margin expansion, the bank raised the company's 2025 to 2026 profit forecast by 8% to 13%. Zhaojin International pointed out that Cloud Music announced its 2024 fiscal year performance, with revenue growing by 1% year-on-year to RMB 7.95 billion, in line with market expectations. Adjusted net profit increased by 108% year-on-year to RMB 1.7 billion, exceeding the consensus forecast by 20%, mainly due to the improved profitability of the online music business and effective cost control. Looking ahead to the 2025 fiscal year, the company will continue to focus on improving user experience to unlock long-term growth opportunities.