Investment Rating - The report maintains an "Accumulate" investment rating for the company [2][6] Core Views - The company achieved a revenue of 7 billion yuan in Q1 2025, representing a year-on-year growth of 24%, and an adjusted net profit of 360 million yuan, marking a turnaround from a net loss of 460 million yuan in the same period last year [1][5] - The gross profit reached 2.539 billion yuan, with a gross margin of 36.3%, an increase of 8 percentage points year-on-year, indicating a significant improvement in profitability [5][6] - The company’s operational cash flow was 1.302 billion yuan, reflecting strong cash generation capabilities [5] Revenue Breakdown - Value-added services revenue was 2.807 billion yuan, up 11% year-on-year, driven by growth in live streaming and membership services [5] - Advertising revenue reached 1.998 billion yuan, a 20% increase, primarily due to growth in performance-based advertising [5] - Mobile gaming revenue surged to 1.731 billion yuan, a remarkable 76% increase, attributed to the strong performance of the exclusive SLG game "Three Kingdoms: Strategize the World" [5] - Revenue from IP derivatives and other businesses was 467 million yuan, down 4% year-on-year [5] User Engagement and Content Strategy - The company reported daily active users of 107 million and monthly active users of 368 million, with an average daily usage time of 108 minutes [5] - The company successfully positioned itself as the exclusive bullet screen video partner for the Spring Festival Gala, attracting over 100 million viewers on New Year's Eve [5] - The company continues to focus on high-quality original content, with notable successes in various series and animations [5] Financial Projections - The company expects revenues to reach 30.856 billion yuan, 34.559 billion yuan, and 37.324 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding adjusted net profits of 1.965 billion yuan, 2.856 billion yuan, and 3.696 billion yuan [7][9] - The projected PE ratios for 2025, 2026, and 2027 are 28.9, 19.9, and 15.4, respectively, indicating a favorable valuation outlook [7][10]

Investment Rating - The report maintains a "Recommended" rating for Bilibili (BILI), expecting it to outperform the benchmark index by 10%-20% over the next six months [16]. Core Insights - Bilibili's Q1 2025 financial results showed revenue of 7 billion yuan, a year-over-year increase of 24%, aligning with Bloomberg consensus expectations. The gross profit reached 2.54 billion yuan, up 58% year-over-year, with a gross margin of 36.3%, also meeting expectations. The company achieved a NON-GAAP net profit of 362 million yuan, marking a turnaround from losses, exceeding consensus forecasts [1]. - Cost-saving measures contributed to the profit exceeding expectations, with R&D expenses at 840 million yuan, 7% lower than anticipated, and sales expenses at 1.17 billion yuan, 3% below expectations. Overall, total expenses were 4% lower than projected [1]. - The report highlights the upcoming performance of the "Three Kingdoms" anniversary season as a key focus area [1]. Financial Projections - Revenue projections for Bilibili are adjusted to 29.9 billion yuan for 2025, 32.4 billion yuan for 2026, and 34.6 billion yuan for 2027, reflecting year-over-year growth rates of 12%, 8%, and 7% respectively [7]. - The forecast for NON-GAAP net profit is updated to 2.01 billion yuan for 2025, 3.6 billion yuan for 2026, and 4.99 billion yuan for 2027, with significant year-over-year growth rates of 147.8%, 247.1%, and 62.3% respectively [7]. - The target price for Bilibili is set at $21.20, based on a 20x PE ratio for the 2026 NON-GAAP net profit, discounted back to 2025 [7]. Business Segments Performance - Mobile gaming revenue for Q1 2025 was 1.73 billion yuan, a 76% year-over-year increase, driven primarily by the core SLG product "Three Kingdoms: Strategy of the World" [7]. - Advertising revenue reached 2 billion yuan, a 20% year-over-year increase, supported by stable user growth, with DAU at 107 million, MAU at 368 million, and an average user engagement time of 108 minutes [7]. - Value-added services generated 2.8 billion yuan in revenue, an 11% year-over-year increase, driven by live streaming and other services [7].

Investment Rating - The report maintains a "Recommended" rating for Bilibili (BILI), expecting it to outperform the benchmark index by 10%-20% over the next six months [16]. Core Insights - Bilibili's Q1 2025 financial results showed revenue of 7 billion yuan, a year-over-year increase of 24%, aligning with Bloomberg consensus expectations. The gross profit reached 2.54 billion yuan, up 58% year-over-year, with a gross margin of 36.3%, also meeting expectations. The company achieved a non-GAAP net profit of 362 million yuan, marking a return to profitability and exceeding consensus forecasts [1]. - Cost-saving measures contributed to the better-than-expected profit, with R&D expenses at 840 million yuan, 7% lower than expected, and sales expenses at 1.17 billion yuan, 3% below expectations. Overall, total expenses were 4% lower than anticipated [1]. Financial Projections - Revenue projections for Bilibili are adjusted to 29.9 billion yuan for 2025, 32.4 billion yuan for 2026, and 34.6 billion yuan for 2027, reflecting year-over-year growth rates of 12%, 8%, and 7% respectively [7]. - The forecast for non-GAAP net profit is updated to 2.01 billion yuan for 2025, 3.6 billion yuan for 2026, and 4.99 billion yuan for 2027, with significant year-over-year growth rates of 147.8%, 247.1%, and 62.3% respectively [7]. Business Segment Performance - Mobile gaming revenue for Q1 2025 was 1.73 billion yuan, a 76% year-over-year increase, driven primarily by the core SLG product "Three Kingdoms: Strategy of the World" [7]. - Advertising revenue reached 2 billion yuan, a 20% year-over-year increase, supported by stable user growth, with daily active users (DAU) reaching 107 million, a 4% year-over-year increase [7]. - Value-added services generated 2.8 billion yuan in revenue, an 11% year-over-year increase, driven by live streaming and other services [7]. Valuation and Target Price - The target price for Bilibili is set at $21.20, based on a 20x PE ratio for the 2026 non-GAAP net profit, discounted back to 2025 [7].

Core Insights - Bilibili (BILI) reported strong results for 1Q25, with revenue largely in line with expectations and profit exceeding consensus estimates [1] - All key business segments of Bilibili outperformed industry growth, indicating a positive trajectory towards profitability [1] Financial Performance - Bilibili's revenue for 1Q25 was consistent with market expectations, while profits were ahead of consensus [1] - The performance across all business segments suggests robust operational metrics supporting the company's growth strategy [1] Market Position - Bilibili's ability to deliver results above industry growth rates reinforces its competitive position in the market [1] - The company's focus on enhancing portfolio performance and uncovering alpha opportunities is supported by a strong track record in investment research [1]

Core Viewpoint - The company reported strong financial performance in Q1 2025, with revenue and adjusted net profit exceeding market expectations, indicating robust growth across various business segments [1][2][3] Financial Performance - Q1 2025 revenue reached 7 billion yuan, slightly above Bloomberg consensus by 1%, with a year-on-year growth of 24% [1] - Adjusted net profit for Q1 2025 was 360 million yuan, surpassing Bloomberg consensus by 47%, marking a turnaround from losses, with a corresponding profit margin of 5.2% [1] - Operating cash flow for Q1 2025 was 1.3 billion yuan [1] User Engagement - Monthly Active Users (MAU) reached 368 million, a year-on-year increase of 8%, while Daily Active Users (DAU) reached 107 million, up 4% [1] - Average daily usage time per user was 108 minutes, an increase of 3 minutes year-on-year, with both MAU and user engagement time hitting historical highs [1] Gaming Business - Q1 2025 gaming revenue was 1.7 billion yuan, a significant year-on-year increase of 76%, driven by the game "Three Kingdoms: Strategy of the World" [2] - The company is focusing on long-term operations for "Three Kingdoms" and has several games awaiting approval, with new seasons and expansions planned [2] Advertising Business - Q1 2025 advertising revenue was 2 billion yuan, reflecting a year-on-year growth of 20%, with high-margin performance advertising revenue growing over 30% [2] - AI is increasingly contributing to advertising growth by optimizing user conversion and generating ads through AIGC, covering over 30% of performance ads [2] Value-Added Services - Q1 2025 revenue from value-added services was 2.8 billion yuan, showing an 11% year-on-year increase [2] - The number of premium members reached 23.5 million, a 7% year-on-year increase, with a paid rate of 6.4% [3] Cost Management - Q1 2025 gross margin was 36.3%, in line with expectations, achieving eleven consecutive quarters of sequential improvement [3] - Effective cost control was noted, with total expenses increasing by only 4% year-on-year, despite a 26% rise in sales and marketing expenses due to promotional activities [3] Profit Forecast - The company has revised its adjusted net profit forecasts for 2025-2027 to 2.049 billion, 2.947 billion, and 3.507 billion yuan respectively, maintaining a buy rating [3]

Core Viewpoint - The company reported strong Q1 2025 performance with significant revenue and profit growth, driven by improvements in user ecosystem and operational efficiency [1][2] Financial Performance - Q1 2025 revenue reached 7.003 billion yuan, a year-over-year increase of 24% [1] - Adjusted net profit attributable to shareholders for Q1 2025 was 362 million yuan, up 179% year-over-year [1] - R&D expenses decreased by 13% to 840 million yuan, indicating improved operational conditions [1] Business Segments - Mobile gaming revenue exceeded expectations at 1.73 billion yuan, a 76% year-over-year increase [1] - Value-added services revenue was 2.81 billion yuan, surpassing consensus estimates with an 11% year-over-year growth [1] - Advertising revenue reached 2 billion yuan, in line with expectations, reflecting a 20% year-over-year increase [1] - IP derivatives and other revenues were 470 million yuan, slightly above expectations but down 4% year-over-year [1] User Growth and Engagement - Daily Active Users (DAU) reached 107 million, a 4.2% year-over-year increase [2] - Monthly Active Users (MAU) stood at 370 million, with daily usage time averaging 108 minutes, up 2.9% year-over-year [2] - The company has 264 million official members, with a 2.3% quarter-over-quarter increase and an 80% annual retention rate [2] Future Outlook - The upcoming anniversary of the game "Three Kingdoms: Strategizing the World" is expected to drive significant revenue growth in Q2 2025 [1] - The company is expanding its game portfolio beyond SLG games, with multiple titles awaiting approval for release [1] - Revenue projections for 2025, 2026, and 2027 are estimated at 30.04 billion, 33.07 billion, and 36.26 billion yuan respectively, with adjusted net profits of 1.82 billion, 2.81 billion, and 3.92 billion yuan [2]

Core Viewpoint - The company reported a significant improvement in its financial performance for Q1 2025, with a notable increase in revenue and adjusted net profit compared to the same period last year, indicating a positive growth trajectory in user engagement and monetization strategies [1][2]. Group 1: Operational Performance - In Q1 2025, the platform's user traffic, stickiness, and payment rate all saw further growth, with Monthly Active Users (MAU) increasing by 8% year-on-year to 368 million, and Daily Active Users (DAU) rising by 5% to 107 million [1]. - The average daily usage time per user increased from 105 minutes in Q1 2024 to 108 minutes in Q1 2025, while Average Revenue Per User (ARPU) significantly improved from 17 yuan to 19 yuan year-on-year [1]. Group 2: Key Financial Metrics - The company achieved a revenue of 7.003 billion yuan in Q1 2025, representing a year-on-year increase of 24% but a quarter-on-quarter decrease of 9% [2]. - The revenue breakdown includes mobile gaming at 1.731 billion yuan (YoY +76%, QoQ -4%), live streaming and value-added services at 2.807 billion yuan (YoY +11%, QoQ -9%), advertising at 1.998 billion yuan (YoY +20%, QoQ -16%), and IP derivatives and other businesses at 467 million yuan (YoY -4%, QoQ slightly up) [2]. - The gross margin stood at 36%, an increase of 8 percentage points year-on-year, with various expense ratios showing continued optimization [2]. Group 3: Mobile Gaming Business - The exclusive licensed game "Three Kingdoms: Strategize the World" performed exceptionally well, driving mobile gaming revenue up by 76% year-on-year to 1.731 billion yuan [3]. - The company anticipates that the game will develop into a long-term attractive title, with a significant update planned for May 31, which is expected to further enhance user engagement [3]. Group 4: Live Streaming and Value-Added Services - Revenue from live streaming and value-added services grew by 11% year-on-year to 2.807 billion yuan, driven by increased earnings from these segments [4]. - The number of monthly paying users reached a record high of 32 million, and the total number of paying members increased to 264 million, reflecting a 12% year-on-year growth [4]. Group 5: Advertising Business - Revenue from advertising increased by 20% year-on-year to 1.998 billion yuan, with the number of advertisers growing by over 35% [5]. - AI-driven advertising creation and placement contributed to a more than 30% increase in performance advertising, while brand and native ads showed stable growth [5]. Group 6: Profit Forecast and Investment Rating - The company forecasts revenues of 30.5 billion yuan, 34 billion yuan, and 37.6 billion yuan for 2025E, 2026E, and 2027E respectively, with corresponding NON-GAAP net profits of 2 billion yuan, 2.6 billion yuan, and 3.3 billion yuan [6]. - The company maintains a strong content ecosystem and user engagement, leading to an upward trend in monetization capabilities, with a target price of 168 yuan per share [6].

Core Insights - The company maintains a "Buy" rating with a target price adjustment to HKD 178, reflecting steady financial performance and a thriving community ecosystem [1] - Revenue forecasts for 2025-2027 have been slightly increased, with expected revenues of CNY 30.46 billion, CNY 33.42 billion, and CNY 36.48 billion respectively [1] - The company reported a significant increase in profit margins, with Q1 2025 revenue reaching CNY 7 billion, a year-on-year increase of 24% [1] User Engagement - The company achieved a record high of 368 million Monthly Active Users (MAU) in Q1 2025, representing a year-on-year growth of 7.8% [2] - Daily Active Users (DAU) reached 107 million, up 4.5% year-on-year, with an average user age of 26 years [2] - Average daily user engagement time was 108 minutes, with 32 million monthly paying users, both setting new records [2] Revenue Growth - Value-added services revenue for Q1 2025 was CNY 2.807 billion, a year-on-year increase of 11%, driven by growth in live streaming and other services [3] - Advertising revenue reached CNY 1.998 billion, up 20% year-on-year, with a 30% increase in performance-based advertising [3] - Mobile gaming revenue surged to CNY 1.731 billion, a 76% increase, largely due to the success of the exclusive game "Three Kingdoms: Strategize" [3]

Core Viewpoint - Bilibili has successfully completed the issuance of $690 million convertible bonds and a $100 million stock buyback program, indicating a strategic move to strengthen its financial position and shareholder value [1] Group 1: Convertible Bonds - The company announced the issuance of $690 million in convertible bonds, which are set to mature in 2030 [1] - The issuance includes an initial buyer's option to increase the principal amount by $90 million [1] Group 2: Stock Buyback - Bilibili has simultaneously conducted a stock sale of 10.2812 million Class Z ordinary shares, which were borrowed from a non-affiliated third party [1] - The company has also completed a stock buyback worth $100 million, which is part of a larger $200 million buyback plan, leaving an additional $80 million to be executed based on market conditions [1]

Core Viewpoint - Bilibili Inc. has successfully completed a US$690 million offering of convertible senior notes due 2030 and a concurrent offering of Class Z ordinary shares, aiming to enhance its content ecosystem and improve monetization efficiency [1][5]. Notes Offering - The offering included US$690 million in convertible senior notes, with an additional US$90 million purchased by initial purchasers [1] - The notes are senior, unsecured obligations maturing on June 1, 2030, with a conversion rate of 42.1747 Class Z ordinary shares per US$1,000 principal amount [3] - The initial conversion price is approximately HK$185.63 per Class Z ordinary share, representing a 27.1% premium over the closing price of HK$146.00 on May 21, 2025 [3] Interest and Use of Proceeds - The notes will bear an interest rate of 0.625% per year, payable semiannually starting December 1, 2025 [4] - Net proceeds from the offering will be used to enhance the content ecosystem, facilitate user growth, improve monetization efficiency, fund share repurchases, and for general corporate purposes [5] Concurrent Delta Offering - Bilibili completed a concurrent offering of 10,281,240 Class Z ordinary shares at HK$140.10 per share, borrowed from non-affiliate third parties [7] - The offering facilitated hedging transactions for investors subscribing to the notes, allowing them to establish short positions [7] - The company repurchased 5,588,140 Class Z ordinary shares for approximately HK$782.9 million as part of its share repurchase program [10]