NetEase Cloud Music Inc. (HK:9899)
:9899
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NetEase Cloud Music Inc.
(9899)
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Rating:70Outperform
Price Target:
HK$138.00
▲(10.40% Upside)
Action:UpgradedDate:04/18/26
The score is primarily supported by a materially improved financial profile (strong margin/ROE expansion and a low-debt balance sheet). This is tempered by weak technical momentum (below key moving averages with negative MACD) and the fundamental risk of limited recent revenue growth plus softer operating cash flow conversion.
Positive Factors
Margin and ROE turnaround
The company moved from earlier losses to materially higher profitability, with gross and net margins expanding sharply and ROE rising to ~21% in 2025. Sustained margin improvement increases cash generation, supports reinvestment and resilience across business cycles.
Negative Factors
Weak revenue growth
Top-line has been stagnant to slightly negative, with revenue down ~2% in 2025. Reliance on margin gains rather than consistent revenue expansion raises risk that profitability gains are less durable if user growth or monetization stalls over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin and ROE turnaround
The company moved from earlier losses to materially higher profitability, with gross and net margins expanding sharply and ROE rising to ~21% in 2025. Sustained margin improvement increases cash generation, supports reinvestment and resilience across business cycles.
Read all positive factors
NetEase Cloud Music Inc. (9899) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$25.10B
Dividend YieldN/A
Average Volume (3M)590.28K
Price to Earnings (P/E)―
Beta (1Y)1.17
Revenue Growth-2.36%
EPS Growth73.71%
CountryHK
Employees1,359
SectorCommunication Services
Sector Strength97
IndustrySoftware - Application
Share Statistics
EPS (TTM)N/A
Shares Outstanding217,916,120
10 Day Avg. Volume443,933
30 Day Avg. Volume590,279
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)2.74
Price to Sales (P/S)4.66
P/FCF Ratio21.94
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$231.19Price Target Upside84.95% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
NetEase Cloud Music Inc. Business Overview & Revenue Model
Company Description
Cloud Village Inc., an investment holding company, engages in the operation of online platforms to provide music and social entertainment services in the People's Republic of China. The company offers music membership subscriptions, sublicensing o...
How the Company Makes Money
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NetEase Cloud Music Inc. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
88
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.71B | 7.56B | 7.95B | 7.87B | 8.99B | 7.00B |
| Gross Profit | 2.65B | 2.70B | 2.68B | 2.10B | 1.29B | 142.67M |
| EBITDA | 1.40B | 1.40B | 1.15B | 787.37M | -356.13M | -1.34B |
| Net Income | 2.64B | 2.68B | 1.56B | 734.18M | -221.49M | -2.06B |
Balance Sheet | ||||||
| Total Assets | 15.29B | 16.47B | 13.58B | 11.61B | 10.89B | 9.39B |
| Cash, Cash Equivalents and Short-Term Investments | 11.03B | 12.18B | 10.22B | 9.51B | 9.11B | 6.62B |
| Total Debt | 5.91M | 10.43M | 6.47M | 6.36M | 8.40M | 10.51M |
| Total Liabilities | 3.17B | 3.59B | 3.40B | 3.17B | 3.07B | 2.01B |
| Stockholders Equity | 12.12B | 12.87B | 10.18B | 8.44B | 7.82B | 7.38B |
Cash Flow | ||||||
| Free Cash Flow | 1.19B | 1.61B | 1.77B | 183.51M | 1.82B | -947.91M |
| Operating Cash Flow | 1.19B | 1.62B | 1.77B | 189.05M | 1.84B | -908.41M |
| Investing Cash Flow | 23.13M | -2.35B | -1.94B | 1.23B | 158.59M | -3.86B |
| Financing Cash Flow | -4.23M | 82.51M | -62.06M | -307.68M | -2.91M | 2.61B |
NetEase Cloud Music Inc. Technical Analysis
Negative
125.00
Price Trends
146.72
Negative
167.73
Negative
214.65
Negative
Market Momentum
-6.19
Negative
36.69
Neutral
32.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9899, the sentiment is Negative. The current price of 125 is below the 20-day moving average (MA) of 128.29, below the 50-day MA of 146.72, and below the 200-day MA of 214.65, indicating a bearish trend. The MACD of -6.19 indicates Negative momentum. The RSI at 36.69 is Neutral, neither overbought nor oversold. The STOCH value of 32.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:9899.
NetEase Cloud Music Inc. Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | HK$14.10B | 14.00 | 41.82% | ― | 35.42% | 87.47% | |
70 Outperform | HK$25.10B | ― | 23.66% | ― | -2.36% | 73.71% | |
64 Neutral | HK$4.30B | 10.86 | -8.12% | ― | 3.16% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | HK$8.28B | 49.57 | 6.99% | ― | 19.62% | 31.05% | |
54 Neutral | HK$38.93B | -35.61 | -13.37% | ― | 22.96% | 56.71% | |
42 Neutral | HK$6.06B | -27.95 | -66.11% | ― | 18.94% | 89.36% |
* Communication Services Sector Average
HK:9899
NetEase Cloud Music Inc.
119.00
-49.70
-29.46%
HK:8083
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0.13
0.04
45.45%
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3.18
0.07
2.25%
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1.46
-0.15
-9.32%
HK:9911
Newborn Town Inc.
9.62
2.33
31.96%
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Kingsoft Cloud Holdings Ltd
8.67
2.36
37.40%
NetEase Cloud Music Inc. Corporate Events
NetEase Cloud Music Sets 2026 AGM to Vote on Board Mandates and Share Capital Powers
Apr 15, 2026
NetEase Cloud Music Inc. has called its annual general meeting for 23 June 2026 in Hangzhou, where shareholders will review the audited financial statements for the year ended 31 December 2025 and the accompanying directors’ and auditorsR...
NetEase Cloud Music Moves to Enable Virtual Shareholder Meetings With Articles Update
Apr 15, 2026
NetEase Cloud Music Inc. plans to amend its memorandum and articles of association to align with updated Hong Kong listing and regulatory requirements, particularly to enable shareholders to attend general meetings virtually and vote electronicall...
NetEase Cloud Music Grants New RSU Awards Under 2022 Incentive Plan
Mar 2, 2026
NetEase Cloud Music has granted 668,973 restricted share unit awards under its 2022 incentive plan to 379 employee participants and five related entity participants, using existing shares with no purchase price upon vesting. The awards will vest e...
NetEase Cloud Music Lifts Profit in 2025 Despite Revenue Dip
Feb 11, 2026
NetEase Cloud Music Inc. reported unaudited 2025 results showing revenue dipping 2.4% year on year to RMB7.76 billion, but profitability improved across key metrics. Gross profit rose 3.3%, operating profit jumped 38.5%, and profit for the year su...
NetEase Cloud Music Sets February Board Meeting to Review 2025 Results and Consider Final Dividend
Jan 28, 2026
NetEase Cloud Music Inc. has scheduled a board meeting for 11 February 2026 to review and approve the group’s annual results for the year ended 31 December 2025 and to consider the potential payment of a final dividend to shareholders. The t...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.