External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>NetEase Cloud Music reported 1H25 results: total revenue declined by 6% YoY to RMB3.83bn; adjusted operating profit grew by 35% YoY to RMB905mn, which is equivalent to 57% of our full-year earnings estimates, mainly thanks to the improved music monetization, solid GPM expansion and S&amp;M expenses control.</li><li>We expect GPM expansion and efficiency gains to continue in 2H25/FY26.</li><li>The company’s GPM/S&amp;M expense ratio (36%/4% in 1H25) still have room to improve, compared to that of TME (44%/3%), especially in a stable competitive environment like China’s online music sector. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

NetEase Cloud Music reported 1H25 results: total revenue declined by 6% YoY to RMB3.83bn; adjusted operating profit grew by 35% YoY to RMB905mn, which is equivalent to 57% of our full-year earnings estimates, mainly thanks to the improved music monetization, solid GPM expansion and S&amp;M expenses control.We expect GPM expansion and efficiency gains to continue in 2H25/FY26.The company’s GPM/S&amp;M expense ratio (36%/4% in 1H25) still have room to improve, compared to that of TME (44%/3%), especially in a stable competitive environment like China’s online music sector. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

NetEase Cloud Music (9899 HK) - Earnings Beat on Strong Music Business and Enhanced Efficiency

<ul><li>Cloud Music is on the right track of improving monetization and expanding margin.</li><li>Announced on 1 January, Cloud Music added licensing agreement with the leading Taiwan music label Bin-Music which further enriched its content library and represented another milestone since the end of exclusive licensing.</li><li>We remain bullish on the company’s music subscription business, supported by its enriching content library and rising paying ratio.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Cloud Music is on the right track of improving monetization and expanding margin.Announced on 1 January, Cloud Music added licensing agreement with the leading Taiwan music label Bin-Music which further enriched its content library and represented another milestone since the end of exclusive licensing.We remain bullish on the company’s music subscription business, supported by its enriching content library and rising paying ratio.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Cloud Music (9899 HK) – Solid core music business outlook on enriching content library

<ul><li>NetEase Cloud Music reported FY24 financial results: total revenue increased by 1% YoY to RMB7.95bn in FY24, in line with consensus estimates; adjusted net profit grew by 108% YoY to RMB1.70bn, 20% ahead of consensus estimates, mainly thanks to the improved profitability of online music business and effective opex control.</li><li>Looking into FY25E, the company will continue to focus on improving user experience to unlock long-term growth opportunities.</li><li>Given the disciplined expense control and solid GPM expansion, we raise FY25- 26E earnings forecast by 8-13%. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

NetEase Cloud Music reported FY24 financial results: total revenue increased by 1% YoY to RMB7.95bn in FY24, in line with consensus estimates; adjusted net profit grew by 108% YoY to RMB1.70bn, 20% ahead of consensus estimates, mainly thanks to the improved profitability of online music business and effective opex control.Looking into FY25E, the company will continue to focus on improving user experience to unlock long-term growth opportunities.Given the disciplined expense control and solid GPM expansion, we raise FY25- 26E earnings forecast by 8-13%. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

NetEase Cloud Music (9899 HK) - Enhanced User Experience, Monetization and Profitability

Thematic (Sector/Industry)

<ul><li>Year to date, the internet sector has pulled back after rapid rallies buoyed by improved sentiment and short-term fund inflows, in line with our previous expectation.</li><li>From a full-year perspective, given the rate cut cycle has not yet started and liquidity remains tight, we suggest focusing on: 1) companies capable of boosting shareholder returns or maintaining decent returns, supported by solid fundamentals (strong competitive advantages, steady growth in core business, and stable profitability) and committed to enhancing shareholder returns (also depends on management's willingness), such as Alibaba, Tencent, and NetEase;</li><li>2) companies whose new businesses have significant market potential and are poised to bring considerable capital gains in the long run, particularly from overseas expansion and AI-related initiatives, such as Pinduoduo, Tencent, Alibaba, and Trip.com</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Year to date, the internet sector has pulled back after rapid rallies buoyed by improved sentiment and short-term fund inflows, in line with our previous expectation.From a full-year perspective, given the rate cut cycle has not yet started and liquidity remains tight, we suggest focusing on: 1) companies capable of boosting shareholder returns or maintaining decent returns, supported by solid fundamentals (strong competitive advantages, steady growth in core business, and stable profitability) and committed to enhancing shareholder returns (also depends on management's willingness), such as Alibaba, Tencent, and NetEase;2) companies whose new businesses have significant market potential and are poised to bring considerable capital gains in the long run, particularly from overseas expansion and AI-related initiatives, such as Pinduoduo, Tencent, Alibaba, and Trip.comContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Internet - 1Q24 recap & our three stock-picking ideas

<ul><li>Cloud Music announced FY23 financial results: total revenue dropped by 13% YoY to RMB7.87bn in FY23, in line with our/consensus estimate.</li><li>2H23 total revenue was down by 16% YoY to RMB3.96bn, mainly due to the adjustment of social entertainment business (-42% YoY).</li><li>Cloud music recorded adjusted net income of RMB819mn in FY23, beating our/consensus estimate of RMB686/629mn, thanks to the solid GPM improvement (+12.3ppt YoY). </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Cloud Music announced FY23 financial results: total revenue dropped by 13% YoY to RMB7.87bn in FY23, in line with our/consensus estimate.2H23 total revenue was down by 16% YoY to RMB3.96bn, mainly due to the adjustment of social entertainment business (-42% YoY).Cloud music recorded adjusted net income of RMB819mn in FY23, beating our/consensus estimate of RMB686/629mn, thanks to the solid GPM improvement (+12.3ppt YoY). Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Cloud Music (9899 HK) - Solid Core Music Business and Margin Expansion Outlook

China

CLOUD VILLAGE INC operates as a music company. The Company develops a leading online music paltform which provides community centric online music services, social entertainment services, and other services. Cloud Village provides its services throughout China.

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Cloud Village (9899 HK)

NetEase Cloud Music (9899 HK) - Earnings Beat on Strong Music Business and Enhanced Efficiency

NetEase Cloud Music reported 1H25 results: total revenue declined by 6% YoY to RMB3.83bn; adjusted operating profit grew by 35% YoY to RMB905mn...

CMB International

Cloud Music (9899 HK) – Solid core music business outlook on enriching content library

Announced on 1 January, Cloud Music added licensing agreement with the leading Taiwan music label Bin-Music which further enriched its content...

CMB International

NetEase Cloud Music (9899 HK) - Enhanced User Experience, Monetization and Profitability

NetEase Cloud Music reported FY24 financial results: total revenue increased by 1% YoY to RMB7.95bn in FY24, in line with consensus estimates

CMB International

Internet - 1Q24 recap & our three stock-picking ideas

Year to date, the internet sector has pulled back after rapid rallies buoyed by improved sentiment and short-term fund inflows, in line with our...

CMB International

Cloud Music (9899 HK) - Solid Core Music Business and Margin Expansion Outlook

Cloud Music announced FY23 financial results: total revenue dropped by 13% YoY to RMB7.87bn in FY23, in line with our/consensus estimate.

CMB International

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