Compared with Tencent Music (01698), Cloud Music prioritizes scale over pricing, is in the relatively early stage of user monetization, and has laid a good foundation for converting paid users and expanding profits.
According to the information from the CITIC Securities app, CICC published a research report stating that it initiated coverage on Cloud Music (09899) with an "outperform the market" rating and a target price of HKD 165. The stock is very attractive with a PE ratio of 14 times adjusted for 2025.
The report mentions that as a leading online music service provider in mainland China, the company benefits from the long-term growth of online music, driving profit growth and valuation. Compared with Tencent Music (01698), Cloud Music prioritizes scale over pricing, is in the relatively early stage of user monetization, and has laid a good foundation for converting paid users and expanding profits.
