20230517-招银国际-Strong_core_music_business_supports_1Q23_earnings_beat_6页_1mb

报告摘要

Revenue: Total revenue reached RMB7.0 billion, marking a 5% year-over-year increase, in line with consensus. Non-IFRS net income was RMB1.4 billion, growing 57% YoY and exceeding estimates by 11%, primarily driven by robust core music business growth and cost control.
Core Music Business: Delivered 34% YoY revenue growth to RMB3.5 billion (50% of total revenue), with 18% year-over-year subscriber growth to 94 million users and a net addition of 5.9 million, supported by enhanced monetization and a 11% ARPPU increase. Expected to maintain strong momentum.
Social Entertainment: Revenue declined 13% YoY to RMB3.5 billion, but audio live streaming showed double-digit growth, partially offsetting losses from traditional streaming amid competition. Anticipated stabilization in 2023, with revenue largely flat quarter-over-quarter.
Financial Performance: Gross profit margin improved to 33.1%, up 5.1 percentage points YoY, due to content cost optimization. Adjusted net margin reached 20.1%, with expectations for further improvement in Q2 2023E.
Valuation & Rating: Maintained BUY rating with target price lifted to US$11.20 (up 40.7% from current US$7.96), based on strong earnings growth forecasts and 16.8x PE valuation. Analysts raise FY23/24 non-IFRS net income forecasts.