Skip to Content
Morningstar

Cloud Music Inc 09899

Morningstar Rating
Unlock
Stock XHKG Rating as of
HK$95.65 −2.35 (2.40%)
View Full Chart
As of Delayed Price Closed
Unlock our analysis with Morningstar Investor
Start Free Trial

Company Report

View Archive

Cloud Music Is Set for Long-Term Subscriber Growth and Margin Improvement

Ivan Su

Cloud Music is the second largest music streaming platform in China, with over 180 million monthly active users, about one third that of Tencent Music Entertainment’s, or Tencent Music. As exclusive licensing practices have been prohibited by China’s antitrust laws, we believe Cloud Music should now grow its content through direct licensing from music labels at costs lower than sublicensing from Tencent Music. This could allow it to grow subscribers rapidly and gain market share in the music streaming industry.

Read Full Report

Price vs Fair Value

View History
09899 is trading at a 888% premium.
Price
HK$98.00
Fair Value
HK$244.00
Uncertainty
High
1-Star Price
HK$515.17
5-Star Price
HK$14.60
Economic Moat
Hpp
Capital Allocation
Qrwpxnhz

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
HK$98.00
Day Range
HK$95.20–100.90
52-Week Range
HK$66.10–110.10
Bid/Ask
HK$95.45 / HK$95.65
Market Cap
HK$20.61 Bil
Volume/Avg
16,700 / 256,261

Key Statistics

Price/Earnings (Normalized)
22.90
Price/Sales
2.38
Dividend Yield (Trailing)
—
Dividend Yield (Forward)
—
Total Yield
2.00%

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)
 22.9026.968.95
Price/Book Value
 2.253.00—
Price/Sales
 2.386.111.51
Price/Cash Flow
 41.4720.576.23
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 C
GOOG
NpzmnxprdyCvh$2.3 Tril
 Alphabet Inc Class A
GOOGL
NnrgzzcswBpsrf$2.3 Tril
 Meta Platforms Inc Class A
META
FbhyqdyszMcj$1.2 Tril
 Tencent Holdings Ltd ADR
TCEHY
BbzhnhzszMnjyt$445.4 Bil
 Spotify Technology SA
SPOT
LnhqrfnJbp$58.6 Bil
 DoorDash Inc Ordinary Shares - Class A
DASH
QydndscxHxthnm$42.7 Bil
 Baidu Inc ADR
BIDU
PmbdngzYpm$32.1 Bil
 Pinterest Inc Class A
PINS
VhgbkkdQmxtd$28.1 Bil
 Snap Inc Class A
SNAP
WsctlgjMjzy$24.3 Bil
 Tencent Music Entertainment Group ADR
TME
BclbwyzpVcbbbkt$24.1 Bil

Sponsor Center