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NetEase Cloud Music Inc.
(9899)
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Rating:72Outperform
Price Target:
HK$112.00
▼(-10.40% Downside)
Action:Upgraded
Date:06/13/26
The score is driven primarily by strong financial performance (profitability and balance sheet strength) and a favorable valuation (low P/E). These positives are tempered by a weaker technical backdrop (below key longer-term moving averages and negative MACD) and the lack of recent revenue growth.
Positive Factors
Profitability Improvement
Margins expanded sharply to gross ~36% and net ~35% in 2025, with EBIT margin near ~18%. Sustained higher margins reflect operating leverage and better cost control, improving earnings durability and underpinning longer-term cash generation and reinvestment capacity.
Negative Factors
Weak Revenue Growth
Top-line declined about 2% in 2025 and multi-year revenue momentum is weak. Earnings gains have been driven mainly by margin expansion rather than user or monetization growth, which limits scale advantages and leaves future profit expansion vulnerable if revenue recovery stalls.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Improvement
Margins expanded sharply to gross ~36% and net ~35% in 2025, with EBIT margin near ~18%. Sustained higher margins reflect operating leverage and better cost control, improving earnings durability and underpinning longer-term cash generation and reinvestment capacity.
Read all positive factors
NetEase Cloud Music Inc. (9899) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$21.36B
Dividend YieldN/A
Average Volume (3M)590.28K
Price to Earnings (P/E)7.0
Beta (1Y)1.32
Revenue Growth-2.36%
EPS Growth73.71%
CountryHK
Employees1,359
SectorCommunication Services
Sector Strength97
IndustrySoftware - Application
Share Statistics
EPS (TTM)N/A
Shares Outstanding217,961,760
10 Day Avg. Volume443,933
30 Day Avg. Volume590,279
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)2.77
Price to Sales (P/S)4.60
P/FCF Ratio22.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$144.00Price Target Upside15.20% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
NetEase Cloud Music Inc. Business Overview & Revenue Model
Company Description
Cloud Music Inc. (9899.HK), operating through its parent entity Cloud Village Inc., functions as an investment holding company primarily focused on delivering digital music and social entertainment experiences across the People's Republic of China...
How the Company Makes Money
NetEase Cloud Music primarily generates revenue through (1) subscription-based services and (2) advertising and other music-related monetization, alongside (3) social entertainment and other value-added services. Subscription revenue is earned fro...
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 | 7.76B | 7.95B | 7.87B | 8.99B | 7.00B |
| Gross Profit | 2.65B | 2.77B | 2.68B | 2.10B | 1.29B | 142.67M |
| EBITDA | 1.40B | 1.62B | 1.15B | 787.37M | -356.13M | -1.34B |
| Net Income | 2.64B | 2.75B | 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 | 6.20M | 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 | 1.71B | 1.61B | 1.77B | 183.51M | 1.82B | -947.91M |
| Operating Cash Flow | 1.72B | 1.62B | 1.77B | 189.05M | 1.84B | -908.41M |
| Investing Cash Flow | -2.24B | -2.35B | -1.94B | 1.23B | 158.59M | -3.86B |
| Financing Cash Flow | 64.27M | 82.51M | -62.06M | -307.68M | -2.91M | 2.61B |
NetEase Cloud Music Inc. Technical Analysis
Negative
125.00
Price Trends
118.63
Negative
134.41
Negative
179.11
Negative
Market Momentum
-4.64
Positive
31.27
Neutral
7.83
Positive
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 above the 20-day moving average (MA) of 113.28, above the 50-day MA of 118.63, and below the 200-day MA of 179.11, indicating a bearish trend. The MACD of -4.64 indicates Positive momentum. The RSI at 31.27 is Neutral, neither overbought nor oversold. The STOCH value of 7.83 is Positive, 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | HK$21.36B | 7.02 | 23.25% | ― | -2.36% | 73.71% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | HK$20.12B | 130.94 | 1.75% | ― | 12.11% | ― | |
48 Neutral | HK$5.71B | 27.99 | 6.99% | ― | 19.62% | 32.01% | |
48 Neutral | HK$19.40B | -17.07 | -12.16% | ― | 31.44% | 56.19% | |
45 Neutral | HK$54.17B | -23.94 | -7.21% | ― | 33.04% | 62.73% | |
42 Neutral | HK$4.55B | -16.49 | -66.11% | ― | 18.94% | 89.36% |
* Communication Services Sector Average
HK:9899
NetEase Cloud Music Inc.
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NetEase Cloud Music Inc. Corporate Events
NetEase Cloud Music Shareholders Approve All AGM Resolutions, Expand Capital Mandates
Jun 23, 2026
NetEase Cloud Music Inc. reported that all resolutions proposed at its 23 June 2026 annual general meeting were approved by shareholders, including the adoption of the 2025 audited financial statements and the re-election of key board members. Sha...
NetEase Cloud Music Cancels 3.63% of Shares After Buyback
Jun 12, 2026
NetEase Cloud Music Inc. has cancelled 7,631,350 treasury shares that were repurchased on the Hong Kong Stock Exchange under general share repurchase mandates approved at its 2024 and 2025 annual general meetings. The cancelled shares represented ...
NetEase Cloud Music Grants New RSU Awards Under 2022 Share Plan
May 28, 2026
NetEase Cloud Music has granted 14,205 restricted share unit awards under its 2022 share scheme to two employee participants, with the awards to vest over three years starting June 1, 2026, at no purchase cost to the grantees and based on individu...
NetEase Cloud Music Posts Q1 2026 Revenue Growth in Parent’s Unaudited Results
May 21, 2026
NetEase Cloud Music Inc., the online music arm of NetEase, reported that its segment net revenues reached RMB2.0 billion in the first quarter of 2026, up 6.6% from the same period in 2025. The business generated a gross profit of RMB734.2 million,...
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...
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.