HK Stock Market Move | NETEASE MUSIC (09899) rose nearly 5%, Lyon is optimistic about the company's stable long-term profit potential.

NETEASE MUSIC (09899) rose nearly 5%, up 4.85% to HKD 203.2 as of the time of writing, with a turnover of HKD 227 million. In terms of news, a previous research report from Lyon pointed out that due to the strategic positioning and product differentiation of various platforms, the risk of direct competition with Bytedance's soda music is low. NETEASE MUSIC is currently trading at 17 times the adjusted forecasted P/E ratio for 2026, with a subscription model that is resilient to economic cycles and solid long-term profit potential from multiple cost leverage, with a target price of HKD 310.5. Shenwan Hongyuan Group stated that the company has a firm enough differentiation strategy in terms of copyrights (independent musicians, original musicians, unique copyrights, etc.) and its approach to catering to young users lays a solid foundation for mid- to long-term growth, with ample potential for both revenue and profit growth.