Risk factor
High price volatility
Profitability factor
Undervalued vs peers
About
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. Its diverse revenue streams encompass premium music membership subscriptions, the sublicensing of content royalties, and providing online advertising solutions. The company also generates income from the direct sale of digital albums, singles, and various virtual in-app items. At the core of its offerings is NetEase Cloud Music, its flagship online platform, which is complemented by a suite of social entertainment products like LOOK Live Streaming, Sheng Bo, and Yin Jie. Beyond its consumer-facing platforms, Cloud Village extends its services to include artist management, comprehensive online music streaming capabilities, and music production. These extensive offerings cater to a broad user base, encompassing both paying subscribers and advertising partners. Established in 2013, the company maintains its headquarters in Hangzhou, China, and operates as a subsidiary of NetEase, Inc.
Company Valuation
Based on key historical and expected multiples, the stock is undervalued relative to its peers. Specifically, the stock is 'cheap' on P/E, undervalued on EV/EBITDA, under
Target Price
The average target price of 9899.HK is 150 and suggests 75.6% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to in