CITIC Lyon has released a research report raising NETEASE MUSIC's (09899) target price by 4.5% from HK$297 to HK$310.5, while maintaining its "Outperform" rating. CITIC Lyon noted that NETEASE MUSIC's first half 2025 results demonstrated solid execution of the company's "scale-first" strategy with significant profit potential. Benefiting from prudent marketing and disciplined content spending, the company achieved adjusted net profit of RMB 1.1 billion, representing a 25% year-over-year increase that exceeded CITIC Lyon's expectations by 19% and consensus estimates by 34%. The company's music subscription revenue grew 15% year-over-year, primarily driven by strong growth in paying users, though this was partially offset by average revenue per paying user (ARPPU). The target price increase reflects upward revisions to the company's earnings per share forecasts.