HK Stock Market Move | NETEASE MUSIC (09899) is now up more than 4%. Institutions predict a 15% year-on-year increase in online music revenue and are optimistic about the long-term growth potential of membership income.

NETEASE MUSIC (09899) is now up more than 4%, as of the time of publication, it is up by 4.43%, reporting 217 Hong Kong dollars, with a trading volume of 1.34 billion Hong Kong dollars. BOCOM INTL released a research report stating that looking ahead to 2025, the company's online music revenue is expected to increase by 15% year-on-year, with member subscription revenue possibly increasing by 16%, still driven by the expansion of the member base. ARPPU may stabilize in the short term, with the positive impact of increasing high-end members being offset by a rise in the proportion of student members. There is still considerable room for improvement in benchmarking against industry peers and other content payment platforms in the long term. Non-member business revenue is expected to increase by 11% year-on-year, with advertising revenue growth possibly slowing down due to a high base. The report points out that NETEASE MUSIC's paywall and ARPPU still have significant operational potential, and it is optimistic about the long-term growth potential of member revenue. CITIC SEC previously stated that NETEASE MUSIC is a leading online music platform in China, with a strong interactive and youthful music community ecosystem. The bank believes that with improvements in the competitive landscape, increased willingness to pay from users, and restructuring of the value chain, the online music industry has entered a healthy growth phase. NETEASE MUSIC differentiates itself through its community ecosystem and distribution mechanism, and closes the content gap through the copyright return program and independent musician ecosystem, thereby accelerating commercial monetization efficiency and driving continued performance growth.