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NetEase Cloud Music Inc.
(9899)
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Rating:73Outperform
Price Target:
HK$92.00
▼(-0.92% Downside)
Action:Reiterated
Date:08/22/26
Overall score is supported by strong financial performance (material margin/ROE improvement and a very conservative, low-debt balance sheet) and a low P/E valuation. These positives are tempered by weak technical conditions (price below all key moving averages with negative momentum indicators) and the recent lack of revenue growth plus weaker operating cash flow conversion versus net income.
Positive Factors
Profitability turnaround
The sharp expansion in gross and net margins shows that the platform has materially improved monetization and cost efficiency after earlier weaker profitability. If these gains persist, stronger operating leverage can support earnings resilience and provide more internal funding for product and content investment.
Negative Factors
Weak top-line momentum
Recent revenue performance suggests that margin gains are not being supported by broad-based demand expansion. Continued stagnation or contraction could limit operating leverage, make future profit improvement harder, and increase dependence on further cost control or monetization changes.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability turnaround
The sharp expansion in gross and net margins shows that the platform has materially improved monetization and cost efficiency after earlier weaker profitability. If these gains persist, stronger operating leverage can support earnings resilience and provide more internal funding for product and content investment.
Read all positive factors
NetEase Cloud Music Inc. (9899) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$18.20B
Dividend YieldN/A
Average Volume (3M)406.68K
Price to Earnings (P/E)9.6
Beta (1Y)1.18
Revenue Growth5.99%
EPS Growth-34.42%
CountryHK
Employees1,288
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)N/A
Shares Outstanding210,333,510
10 Day Avg. Volume585,350
30 Day Avg. Volume406,678
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$136.41Price Target Upside46.92% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
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 from (1) subscriptions for paid music streaming memberships, where users pay recurring fees for enhanced listening features and access; (2) social entertainment services, where users purchase virtual...
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 | 7.89B | 7.76B | 7.95B | 7.87B | 8.99B | 7.00B |
| Gross Profit | 2.85B | 2.77B | 2.68B | 2.10B | 1.29B | 142.67M |
| EBITDA | 1.53B | 1.62B | 1.15B | 787.37M | -353.45M | -1.33B |
| Net Income | 1.67B | 2.75B | 1.56B | 734.18M | -221.49M | -2.06B |
Balance Sheet | ||||||
| Total Assets | 16.36B | 16.47B | 13.58B | 11.61B | 10.89B | 9.39B |
| Cash, Cash Equivalents and Short-Term Investments | 13.13B | 12.18B | 10.22B | 9.51B | 9.11B | 6.62B |
| Total Debt | 833.00K | 6.20M | 6.47M | 6.36M | 8.40M | 10.51M |
| Total Liabilities | 3.72B | 3.59B | 3.40B | 3.17B | 3.07B | 2.01B |
| Stockholders Equity | 12.64B | 12.87B | 10.18B | 8.44B | 7.82B | 7.38B |
Cash Flow | ||||||
| Free Cash Flow | 1.31B | 1.61B | 1.77B | 183.51M | 1.82B | -947.91M |
| Operating Cash Flow | 1.32B | 1.62B | 1.77B | 189.05M | 1.84B | -908.41M |
| Investing Cash Flow | -219.52M | -2.35B | -1.94B | 1.23B | 158.59M | -3.86B |
| Financing Cash Flow | -415.79M | 82.51M | -62.06M | -307.68M | -2.91M | 2.61B |
NetEase Cloud Music Inc. Technical Analysis
Neutral
92.85
Price Trends
87.48
Positive
102.03
Negative
122.92
Negative
Market Momentum
-0.23
Negative
55.26
Neutral
57.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9899, the sentiment is Neutral. The current price of 92.85 is above the 20-day moving average (MA) of 85.27, above the 50-day MA of 87.48, and below the 200-day MA of 122.92, indicating a neutral trend. The MACD of -0.23 indicates Negative momentum. The RSI at 55.26 is Neutral, neither overbought nor oversold. The STOCH value of 57.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | HK$18.20B | 9.59 | 13.11% | ― | 5.99% | -34.42% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | HK$29.85B | 104.05 | 3.02% | 0.10% | 16.98% | ― | |
56 Neutral | HK$18.67B | -5.58 | -7.08% | ― | 35.32% | 74.56% | |
47 Neutral | HK$5.86B | 20.60 | 8.39% | ― | 20.34% | 27.46% | |
47 Neutral | HK$46.69B | 132.06 | 1.09% | ― | 31.42% | ― | |
42 Neutral | HK$2.70B | -6.31 | -13.18% | ― | 40.17% | 76.39% |
* Communication Services Sector Average
HK:9899
NetEase Cloud Music Inc.
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NetEase Cloud Music Inc. Corporate Events
NetEase Cloud Music Grants Performance-Linked Share Awards Under 2022 Incentive Plan
Aug 28, 2026
NetEase Cloud Music has granted 53,606 restricted share unit awards under its 2022 Plan to three employee participants, using existing shares with a three-year vesting schedule starting 1 September 2026. The awards vest at no purchase price, are s...
NetEase Cloud Music Posts Higher Revenue but Sharply Lower Profit in First-Half 2026
Aug 20, 2026
NetEase Cloud Music Inc., a Cayman Islands-incorporated company listed in Hong Kong, operates a leading online music streaming and digital entertainment platform focused on the Chinese market. It generates revenue from paid music subscriptions, ad...
NetEase Cloud Music Sets Board Meeting and Earnings Call for First-Half 2026 Results
Aug 6, 2026
NetEase Cloud Music Inc. said its board of directors will meet on August 20, 2026, to review and approve interim results for the first half of 2026 and to consider the declaration of an interim dividend for shareholders. Management will also host ...
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.