Skip to Content
Morningstar

Cloud Music Inc 09899

Morningstar Rating
Unlock
Stock XHKG Rating as of
HKD 100.00 +1.00 (1.01%)
View Full Chart
As of Delayed Price Open
Unlock our analysis with Morningstar Investor
Start Free Trial

Company Report

View Archive

Cloud Music: Solid Start to 2024; Shares Undervalued

Ivan Su

We maintain our fair value estimate for Cloud Music following its parent company, NetEase's recent earnings release, which provided insights into Cloud Music's financial performance for the first quarter of 2024. Cloud Music only publishes financial reports on an interim basis. The revenue for Cloud Music increased by 4% year over year, driven by an acceleration in music subscription growth. However, this was partly offset by a decline in live streaming-related revenue.

Read Full Report

Price vs Fair Value

View History
09899 is trading at a 455% premium.
Price
HKD 99.00
Fair Value
HKD 614.00
Uncertainty
High
1-Star Price
HKD 143.91
5-Star Price
HKD 54.90
Economic Moat
Bcn
Capital Allocation
Znzpdcty

Bulls Say, Bears Say

Bulls

Termination of exclusive deals with music labels by Tencent Music would present opportunities for Cloud Music to bridge the gap in music content and post robust top-line growth.

Bears

Increasing content cost, marketing and R&D expenses would keep Cloud Music in a loss-making state over the next few years.

Show More
Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if 09899 is a good fit for your portfolio.
Get 7 Days Free

Trading Information

Previous Close Price
HKD 99.00
Day Range
HKD 99.00–100.00
52-Week Range
HKD 66.10–110.10
Bid/Ask
HKD 99.70 / HKD 100.10
Market Cap
HKD 21.55 Bil
Volume/Avg
4.0 Mil / 199,302

Key Statistics

Price/Earnings (Normalized)
23.14
Price/Sales
2.41
Dividend Yield (Trailing)
—
Dividend Yield (Forward)
—
Total Yield
1.98%

Company Profile

Cloud Music is the second largest online music service provider in China. It was founded in 2013 by NetEase, which currently holds around 58% of its equity stake and 90% of voting power. The business model of Cloud Music resembles that of its main competitor Tencent Music, as both provide music streaming services to their users plus social entertainment features such as livestreaming.
Sector
Communication Services
Industry
Internet Content & Information
Stock Style Box
Mid Growth
Total Number of Employees
1,359
Website
http://ir.music.163.com

Competitors

Valuation

View More
Metric
09899
TME
SIRI
Price/Earnings (Normalized)
 23.1427.059.05
Price/Book Value
 2.273.06—
Price/Sales
 2.416.131.52
Price/Cash Flow
 41.9020.646.31
Price/Earnings
09899
TME
SIRI

Financial Strength

Metric
09899
TME
SIRI
Quick Ratio
 3.432.420.22
Current Ratio
 3.652.670.35
Interest Coverage
 1,041.3846.804.69
Quick Ratio
09899
TME
SIRI

Profitability

Metric
09899
TME
SIRI
Return on Assets (Normalized)
 7.34%8.61%14.48%
Return on Equity (Normalized)
 10.20%11.56%—
Return on Invested Capital (Normalized)
 4.90%8.94%26.99%
Return on Assets
09899
TME
SIRI
See how this stock stacks up to its competitors with Morningstar Investor
Start Free Trial

Internet Content & Information Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Alphabet Inc Class A
GOOGL
HswtvngbqMfgz$2.3 Tril
 Alphabet Inc Class C
GOOG
QcbvfwtlsChr$2.3 Tril
 Meta Platforms Inc Class A
META
WjsjbxkmgFfs$1.3 Tril
 Tencent Holdings Ltd ADR
TCEHY
KssjmjszhNgxb$457.4 Bil
 Spotify Technology SA
SPOT
BmjrggtsdFhy$62.4 Bil
 DoorDash Inc Ordinary Shares - Class A
DASH
DsfvyrzWnwqkwd$44.0 Bil
 Baidu Inc ADR
BIDU
DpywjrqyQkf$31.4 Bil
 Pinterest Inc Class A
PINS
DvgzbxzrTkbgnps$29.5 Bil
 Snap Inc Class A
SNAP
DxlwgwhYzvt$25.8 Bil
 Tencent Music Entertainment Group ADR
TME
ZhcftkzvRlqnkdz$24.9 Bil

Sponsor Center