CICC issued a report statinggoliathpoker, Cloud Music's first-quarter revenue increased by 3.3 year-on-yeargoliathpoker.6% to 2.030 billion yuan, basically in line with expectations; gross profit margin increased by 7.7 percentage points quarter-on-quarter to 38%, exceeding the bank's expectations, mainly due to a higher one-time adjustment in copyright fees. The company did not disclose more operating data and financial details for the first quarter.

The report pointed out that the quarterly net increase in paying users in the first quarter hit a new high in the past two years, and the product returned to the core of music after the revision. Throughout the year, we actively promoted the progress of copyright cooperation, and the Korean music content library was further improved. Taking into account social entertainment revenue adjustments and effective cost control, we will maintain the 2024 and 2025 Non-IFRS net profit forecast unchanged. The bank maintained its "outperform industry" rating and raised its target price by 10.3% to HK$114 due to the upward shift of the industry's valuation center.