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<Research>CLSA: Risk of Head-to-head Competition Among CN Music Platforms Low
Recommend 2 Positive 3 Negative 5 |
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The share prices of NETEASE MUSIC (09899.HK) and TME-SW (01698.HK) underperformed over the past week due to market concerns about rising competition from ByteDance's Soda Music, CLSA issued a research report saying. The broker believed that, due to the strategic positioning and product differentiation of each platform, the risk of direct head-to-head competition is relatively low. CLSA reiterated ratings at Outperform for NETEASE MUSIC and TME-SW. In August, CLSA downgraded NETEASE MUSIC from High Conviction Outperform to Outperform due to overly high investor expectations and excessive market optimism. However, the broker believed that the recent decline in NETEASE MUSIC's stock price is excessive. The stock now trades at 1x the adjusted projected PE ratio for 2026, with a subscription model that is resistant to economic cycles and decent long-term profit potential from multiple cost leverage. Its target price is set at $310.5. AASTOCKS Financial News Website: www.aastocks.com |
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