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Tencent Music

NETEASE MUSIC

CLSA Raises Target Price for Tencent Music and NetEase Cloud Music

Citi raised the target price for Tencent Music to RMB 97.1, and the target price for NetEase Music to RMB 297. The report shows an optimistic outlook for China's online/offline music market, with a recovery in consumer demand and improved willingness to pay among young and low-income users. 31% of respondents plan to increase their music subscription spending, and 41% accept price increases. The target price for Tencent Music was raised from HKD 77.7 to HKD 97.1, maintaining an "outperform" rating; the target price for NetEase Music was raised from HKD 250 to HKD 297, with the rating adjusted to "outperform."

In "The Big Banks," Citi raised the target price for Tencent Music to 97.1 yuan and increased the target price for NETEASE MUSIC to 297 yuan

On Monday, Tencent Music rose over 3%, closing at $21.31. Dongfang Securities recently released a research report indicating that the music industry is expected to achieve dual growth in traffic and payments through copyright expansion. The report believes that Tencent Music and NetEase Cloud Music can stabilize and enhance traffic and payment rates through copyright supplementation and user operations. Tencent Music, through the acquisition of South Korea's SM and the proposed acquisition of Himalaya, is expected to attract Kpop and long audio users; NetEase Cloud, on the other hand, maintains stable traffic through independent musician incubation and Kpop copyrights. In addition, the increase in the proportion of paywalls and the expansion of SVIP benefits are driving ARPPU growth

US Stock Movement | Tencent Music rises over 3% as institutions believe the industry is expected to achieve dual growth in traffic and subscriptions through copyright expansion

NETEASE MUSIC rose over 5% in the late trading session, and as of the time of writing, it has increased by 5.64%, reaching HKD 258.6, with a transaction volume of HKD 422 million. Soochow Securities pointed out that NETEASE MUSIC has high user stickiness, and it is expected that the DAU/MAU will reach 42% by 2025. The company focuses on its core music business, optimizing product experience and increasing user scale, especially among the younger demographic. China Merchants Securities believes that NETEASE has performed excellently in terms of growth in payment rates, but the ARPPU value is still below the industry level, indicating significant room for improvement in single-user value

Understanding the Market | NETEASE MUSIC surged over 5% in the closing hours, with relatively high user stickiness and significant potential for improvement in user value extraction

CLSA Raises Target Price for Tencent Music and NetEase Cloud Music

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