In a report released yesterday, Saiyi He from CMB International Securities maintained a Buy rating on Cloud Music Inc., with a price target of HK$330.00.
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Saiyi He has given his Buy rating due to a combination of factors including Cloud Music Inc.’s strong financial performance and strategic improvements. The company reported a significant increase in adjusted operating profit, driven by enhanced music monetization and effective cost management, despite a slight decline in total revenue. This indicates a robust operational efficiency that is expected to continue improving in the future.
Moreover, the company’s online music services have shown healthy growth, particularly in subscriber numbers and digital album sales, which are key revenue drivers. The strategic focus on optimizing operational strategies and product design has led to a decline in social entertainment revenue, but this is part of a broader plan to concentrate on the core music business. The outlook for the second half of 2025 suggests a recovery in revenue growth and further margin expansion, supporting the Buy rating with a raised target price reflecting these positive prospects.
In another report released today, CLSA also maintained a Buy rating on the stock with a HK$310.50 price target.
9899’s price has also changed dramatically for the past six months – from HK$148.700 to HK$275.400, which is a 85.21% increase.