Investment Rating - The report upgrades the investment rating to "Buy" based on improved profitability and growth prospects [3]. Core Insights - The company achieved a revenue of 7.95 billion RMB in 2024, a year-on-year increase of 1.1%, with significant improvement in profitability, achieving a gross profit of 2.682 billion RMB, up 27.5% year-on-year, and a net profit of 1.7 billion RMB, up 107.7% year-on-year [1][3]. - The online music segment showed resilience with a revenue of 5.355 billion RMB, reflecting a year-on-year growth of 23.1%, driven by an increase in subscription revenue [1][2]. Summary by Sections Revenue and Profitability - The company reported a total revenue of 7.95 billion RMB for 2024, with a slight increase of 1.1% compared to the previous year [1]. - Gross profit reached 2.682 billion RMB, with a gross margin improvement from 26.7% in 2023 to 33.7% in 2024 [1]. - Adjusted net profit for 2024 was 1.7 billion RMB, marking a substantial increase of 107.7% year-on-year [1][3]. User Engagement and Content Strategy - The company focuses on enhancing its differentiated content ecosystem, increasing the number of independent musicians on the platform to over 773,500, with approximately 4.4 million music tracks uploaded [2]. - The average listening time for long audio content per user increased by 35.8% year-on-year, indicating growing user engagement [2]. Cost Management - Sales expenses decreased by 19.3% to 612 million RMB due to more prudent promotional strategies, while R&D expenses fell by 10.2% to 780 million RMB, reflecting improved resource utilization [3]. Future Projections - The adjusted net profit forecast for 2025 is raised to 1.9 billion RMB, representing a 64% increase from previous estimates, with projections for 2026 and 2027 at 2.174 billion RMB and 2.446 billion RMB, respectively [3][4].
网易云音乐：2024年业绩公告点评：聚焦产品优化&用户体验，盈利能力显著改善-20250224