CITIC SEC: First Giving Netease Music (09899) a "Buy" Rating with a Target Price of HKD 181

CITIC Securities released a research report stating that it is expected that the adjusted net profit of NETEASE MUSIC (09899) in 2025-2027 will be 18.33/21.35/25.09 billion yuan respectively. Combining the results of the SOTP valuation method and DCF valuation method, the company is given a target price of 181 Hong Kong dollars per share, with an initial coverage and a "buy" rating. The bank 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 the improvement of the competitive landscape, the increase in user willingness to pay, and the reshaping of the value chain, the online music industry has entered a stage of healthy growth. NETEASE MUSIC creates differentiated experiences through its community ecosystem and distribution mechanism, fills content gaps through copyright return programs and independent music ecosystem, accelerates commercialization efficiency, and is expected to drive continued performance growth.