Core Viewpoint - Bilibili Inc. has released its unaudited interim financial statements for the three months ended March 31, 2024, and 2025, along with a management discussion and analysis of financial condition and results of operations [1]. Company Overview - Bilibili is a leading video community in China, targeting young generations with a mission to enrich their everyday lives [3]. - The platform offers a diverse range of video-based content, promoting the value proposition of "All the Videos You Like" [3]. - Bilibili has pioneered the "bullet chatting" feature, enhancing user engagement by allowing real-time comments during video viewing [3]. - The company serves as a hub for diverse interests among young people in China and plays a significant role in promoting Chinese culture globally [3].

Core Viewpoint - Bilibili Inc. is conducting a dual offering, including a proposed offering of US$500 million in convertible senior notes due 2030 and a Concurrent Delta Offering of its Class Z ordinary shares to enhance its content ecosystem and improve monetization efficiency [2][3][5]. Group 1: Offering Details - The proposed Notes Offering is for US$500 million in aggregate principal amount, with an option for initial purchasers to buy an additional US$75 million [2]. - The Concurrent Delta Offering involves borrowing Class Z ordinary shares from third parties, with no new shares being issued, and is designed to facilitate hedging for investors subscribing to the Notes [3][5]. - The Company plans to use part of the proceeds from the Notes Offering for a Concurrent Repurchase of up to US$100 million of its Class Z ordinary shares [4][5]. Group 2: Strategic Intent - The net proceeds from the Notes Offering will be used to enhance the content ecosystem, facilitate user growth, and improve overall monetization efficiency [2][5]. - The Concurrent Repurchase reflects the Company's confidence in its long-term strategy and growth, with repurchased shares expected to be cancelled [5]. Group 3: Company Background - Bilibili is a leading video community in China, focusing on enriching the lives of young generations through diverse video content and community engagement [9]. - The Company is known for its unique "bullet chatting" feature, which enhances user interaction during video viewing [9].

Core Viewpoint - Bilibili Inc. is proposing a Notes Offering of US$500 million in convertible senior notes due 2030 to enhance its content ecosystem and improve monetization efficiency [1][2]. Group 1: Notes Offering Details - The proposed offering consists of US$500 million in aggregate principal amount of convertible senior notes, with an option for initial purchasers to buy an additional US$75 million [1]. - The notes will mature on June 1, 2030, and holders can convert them into Class Z ordinary shares or American depositary shares prior to maturity [3]. - The interest rate and initial conversion rate will be determined at the time of pricing [3]. Group 2: Use of Proceeds - Net proceeds from the Notes Offering will be used to enhance the content ecosystem, facilitate user growth, and improve monetization efficiency [2]. - The proceeds will also fund a Concurrent Repurchase of Class Z ordinary shares and other general corporate purposes [2][8]. Group 3: Concurrent Delta Offering - A separate underwritten offering will borrow Class Z ordinary shares to facilitate hedging transactions for investors subscribing to the Notes [5]. - The number of shares for the Concurrent Delta Offering will be determined at the time of pricing and will correspond to initial short positions of Convertible Arbitrage Investors [5]. - The Company will not receive any proceeds from the Concurrent Delta Offering, which is contingent upon the Notes Offering [5][9]. Group 4: Repurchase Program - The Company intends to purchase up to US$100 million of its Class Z ordinary shares as part of the Concurrent Repurchase [6][8]. - This repurchase reflects the Company's confidence in its long-term strategy and aims to offset potential dilution for shareholders upon conversion of the Notes [8]. Group 5: Company Overview - Bilibili is a leading video community in China, focusing on enriching the lives of young generations through diverse video content [12]. - The platform is known for its unique "bullet chatting" feature, enhancing user engagement by allowing real-time comments during video viewing [12].

Investment Rating - The report assigns a "Buy" rating for the company Bilibili (BILI US) with a target price of $26.00, indicating a potential upside of 43.3% from the current price of $18.15 [4][24]. Core Insights - The first quarter profits exceeded expectations, driven by growth in gaming and advertising, with a revenue of 7 billion RMB, representing a year-on-year increase of 24% [2][7]. - The report highlights that the company's monthly active users (MAU) increased by 28 million quarter-on-quarter, benefiting from collaborations such as the Spring Festival Gala [7]. - The gaming revenue saw a significant year-on-year increase of 76%, primarily due to the performance of the game "Three Kingdoms" [7]. - Advertising revenue also grew by 20% year-on-year, outpacing industry growth, supported by increased traffic and improved marketing efficiency through AI technology [7]. Financial Overview - Revenue projections for the company are as follows: - 2023: 22,528 million RMB - 2024: 26,832 million RMB - 2025E: 30,321 million RMB - 2026E: 32,245 million RMB - 2027E: 34,465 million RMB - The net profit is expected to turn positive in 2025, with estimates of 2,316 million RMB, growing to 4,145 million RMB by 2027 [3][25]. - The adjusted net profit for 2025 is projected at 363 million RMB, with a significant increase in earnings per share (EPS) from -0.05 RMB in 2024 to 5.47 RMB in 2025 [3][25]. User Engagement Metrics - The report indicates that the number of paid users reached 32 million, with a consistent growth in user engagement metrics [12][14]. - The average daily usage time per user has shown a year-on-year increase, reflecting the platform's growing engagement [9][10]. Valuation and Future Outlook - The report maintains the revenue and profit expectations for 2025, with a projected compound annual growth rate (CAGR) of 34% for adjusted net profit from 2025 to 2027 [7][19]. - The valuation is based on a PEG ratio of 1x for comparable entertainment and gaming companies, supporting the target price of $26.00 [7][19].

Investment Rating - The report assigns a "Buy" rating for the company Bilibili (BILI US) with a target price of $26.00, indicating a potential upside of 43.3% from the current price of $18.15 [4][24]. Core Insights - The first quarter profits exceeded expectations, driven by growth in gaming and advertising, with a revenue of 7 billion RMB, representing a year-on-year increase of 24% [2][7]. - The report highlights that the company's monthly active users (MAU) increased by 28 million quarter-on-quarter, with a year-on-year growth of 8% [7][19]. - The gaming revenue saw a significant year-on-year increase of 76%, primarily due to the success of the game "Three Kingdoms" [7][19]. - Advertising revenue also grew by 20% year-on-year, benefiting from increased traffic and improved marketing efficiency through AI technology [7][19]. Financial Overview - Revenue projections for the company are as follows: - 2023: 22,528 million RMB - 2024: 26,832 million RMB - 2025E: 30,321 million RMB - 2026E: 32,245 million RMB - 2027E: 34,465 million RMB - The net profit is expected to turn positive in 2025, with estimates of 2,316 million RMB, 3,298 million RMB in 2026, and 4,145 million RMB in 2027 [3][25]. - The adjusted net profit for 2025 is projected at 2,316 million RMB, with an adjusted earnings per share of 5.47 RMB [3][25]. User Engagement Metrics - The report indicates that the number of paid users reached 32 million, with a stable payment rate [12][14]. - The average daily usage time per user has shown consistent year-on-year growth, contributing to overall user engagement [9][10]. Market Position and Future Outlook - The company is expected to maintain high growth in gaming, with a projected increase of 59% in the second quarter of 2025, driven by upcoming game updates and new releases [7][19]. - The advertising revenue is anticipated to grow by 18% year-on-year, supported by traffic growth and product optimization [7][19]. - The report maintains a positive outlook on the company's content positioning and user value enhancement, which are expected to drive user engagement and commercialization [7][19].

Group 1 - The core viewpoint of the articles highlights the positive impact of consumption upgrades on economic recovery, with a notable increase in retail sales across various sectors in the first quarter [1] - The retail sales of communication equipment, cultural and office supplies, home appliances, and furniture grew by 26.9%, 21.7%, 19.3%, and 18.1% year-on-year respectively [1] - The retail volume of passenger cars increased by 5.8% year-on-year in the first quarter, with new energy vehicles seeing a significant growth of 36.4%, achieving a penetration rate of 47.2% [1] Group 2 - The Hong Kong stock market experienced a pullback after an initial rise, with sectors such as national trend clothing, automobiles, media, and short videos showing strong performance [1] - Notable gains were observed in stocks like Zhongsheng Holdings and Anta Sports, which rose over 6%, while others like Huachen Automotive and Yueda Group increased by over 5% [1] - The Hong Kong Consumption ETF (159735) saw a net inflow of over 20 million yuan in the past five trading days, indicating high market interest [1] Group 3 - According to Guosheng Securities, the relatively low proportion and development level of service consumption in China present an opportunity for growth, especially in the context of external demand pressure and insufficient domestic demand [2] - The report suggests that targeted income increases for residents, such as consumption vouchers and childbirth subsidies, along with enhanced public education investment, are essential for promoting service consumption [2] - The focus on attracting foreign demand through inbound tourism and cultural product exports, as well as optimizing supply by upgrading traditional services and fostering new service consumption, is crucial for development [2]

Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [10][8]. Core Insights - The company has entered a profitable era with significant user value being released, as evidenced by a strong growth trajectory in revenue and profitability [4][5]. - The gaming segment continues to show robust growth, with a notable increase in revenue driven by popular titles [6][8]. - The advertising revenue is experiencing rapid growth, supported by AI-driven strategies that enhance operational efficiency [6][8]. Financial Performance Summary - For 2023, the company reported revenue of 22,528 million HKD, with a projected increase to 30,688 million HKD by 2025, reflecting a growth rate of 19.10% [3]. - Non-GAAP net profit is expected to turn positive in 2025, reaching 2,147 million HKD, with a significant improvement from a loss of 3,414 million HKD in 2023 [3][8]. - The gross margin has been on an upward trend, reaching 36.3% in Q1 2025, with high-margin businesses like gaming and advertising contributing to this improvement [5][8]. User Engagement and Growth - Monthly active users reached a historical high of 368 million in Q1 2025, with an average daily usage time of 108 minutes [5]. - The number of paying users has also increased, with 32 million monthly paying users reported [5][7]. Revenue Breakdown - In Q1 2025, the company generated 20 billion HKD from advertising, a 20% year-on-year increase, accounting for 29% of total revenue [6]. - The gaming segment contributed 17.3 billion HKD in revenue, marking a 76% increase year-on-year, driven by the success of titles like "Three Kingdoms: Strategy" [6][8]. - Value-added services generated 28.1 billion HKD in Q1 2025, with a stable membership base of 23.5 million [7]. Future Projections - Revenue projections for 2025, 2026, and 2027 are 30,688 million HKD, 33,499 million HKD, and 36,145 million HKD respectively, with corresponding Non-GAAP net profits of 2,147 million HKD, 3,140 million HKD, and 3,972 million HKD [3][8]. - The company is expected to achieve a P/E ratio of 25.66 in 2025, decreasing to 13.87 by 2027, indicating improving valuation metrics [3][8].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company achieved a significant revenue increase in Q1 2025, with total revenue reaching 7.003 billion yuan, representing a year-on-year growth of 23.6% [4] - The adjusted net profit for Q1 2025 was 362 million yuan, marking a turnaround from losses in previous periods [4] - The growth in revenue was driven by strong performance in mobile gaming, advertising, and value-added services [4][5] - The company maintains its profit forecasts for 2025-2027, expecting net profits of 513 million, 1.919 billion, and 2.729 billion yuan respectively [4] Revenue Breakdown - In Q1 2025, revenue from value-added services was 2.807 billion yuan (up 11% year-on-year), primarily due to increased live streaming and other services [4] - Advertising revenue reached 1.998 billion yuan (up 20% year-on-year), driven by strong growth in performance-based advertising [4] - Mobile gaming revenue was 1.731 billion yuan (up 76% year-on-year), largely attributed to the success of the game "Three Kingdoms: Strategize the World" [4] - Revenue from IP derivatives and other sources was 467 million yuan (down 4% year-on-year) [4] Profitability Metrics - The company's gross margin in Q1 2025 was 36.3%, an increase of 7.9 percentage points year-on-year, marking 11 consecutive quarters of improvement [5] - The adjusted net profits for the last three quarters were 236 million, 452 million, and 362 million yuan respectively [5] User Growth and Engagement - The platform's daily active users (DAU) reached 107 million (up 4.5% year-on-year), while monthly active users (MAU) hit a record high of 368 million (up 7.9% year-on-year) [6] - The average daily usage time per user was 108 minutes in Q1 2025, an increase of 3 minutes year-on-year [6] - The average age of active users on the platform has increased from 21 in 2018 to 26 in Q1 2025, indicating a maturing user base [6] Financial Summary and Valuation Metrics - The company forecasts revenue growth from 22.528 billion yuan in 2023 to 30.731 billion yuan in 2025, with a year-on-year growth rate of 14.5% [5] - The projected earnings per share (EPS) for 2025 is 1.2 yuan, with a price-to-earnings (P/E) ratio of 107.8 [5]

《2024Q4 全面盈利，游戏、广告或继 续驱动业绩增长—港股公司信息更新 报告》-2025.2.21 《首次实现单季度盈利，游戏、广告 持续驱动盈利提升—港股公司信息更 新报告》-2024.11.15 传媒/数字媒体 哔哩哔哩-W（09626.HK） 2025Q1 游戏收入大增且连续盈利，流量稳步增长 2025 年 05 月 21 日 投资评级：买入（维持） | 日期 | 2025/5/20 | | --- | --- | | 当前股价(港元) | 140.20 | | 一年最高最低(港元) | 238.80/98.900 | | 总市值(亿港元) | 599.02 | | 流通市值(亿港元) | 586.02 | | 总股本(亿股) | 4.27 | | 流通港股(亿股) | 4.18 | | 近 3 个月换手率(%) | 83.72 | 股价走势图 数据来源：聚源 -40% 0% 40% 80% 120% 2024-05 2024-09 2025-01 哔哩哔哩-W 恒生指数 相关研究报告 《广告及游戏拉动收入加速增长，单 季度盈利可期—港股公司信息更新报 告》-2024.8.23 方光照（分析师） 田 ...

Core Viewpoint - The Hang Seng Tech Index rose over 1% in the afternoon session, with Bilibili and Li Auto leading the gains among constituent stocks [1] Company Summary - Bilibili and Li Auto were the top performers in the Hang Seng Tech Index, contributing significantly to the index's increase [1]