Investment Rating - The report maintains a "Buy" rating for the company [3][19]. Core Insights - The company's total revenue for Q3 2024 reached 7.31 billion CNY, representing a year-over-year increase of 26% and a quarter-over-quarter increase of 19%. The growth was primarily driven by advertising and gaming businesses [1]. - The gross margin for Q3 2024 was 34.9%, an increase of 9.9 percentage points year-over-year and 5.6 percentage points quarter-over-quarter. Non-GAAP operating profit turned positive for the first time at 272 million CNY, with expectations of reaching 400 million CNY in Q4 2024 [1][2]. - The advertising revenue for Q3 2024 was 2.09 billion CNY, up 28% year-over-year and 3% quarter-over-quarter, contributing to an increase in overall gross profit [1][2]. - The gaming revenue for Q3 2024 was 1.82 billion CNY, showing a significant year-over-year increase of 84% and a quarter-over-quarter increase of 81%, mainly due to the performance of the new game "Three Kingdoms: Strategize the World" [1][2]. Summary by Sections Financial Performance - Q3 2024 total revenue: 7.31 billion CNY (yoy +26%, qoq +19%) [1]. - Q3 2024 gross margin: 34.9% (yoy +9.9pp, qoq +5.6pp) [1]. - Q3 2024 Non-GAAP operating profit: 272 million CNY, first positive result [1]. - Q4 2024 revenue forecast: 7.66 billion CNY (yoy +20.67%, qoq +4.86%) [7]. Revenue Breakdown - Advertising revenue in Q3 2024: 2.09 billion CNY (yoy +28%, qoq +3%) [1]. - Live streaming and VAS revenue in Q3 2024: 2.82 billion CNY (yoy +9%, qoq +10%) [1]. - Gaming revenue in Q3 2024: 1.82 billion CNY (yoy +84%, qoq +81%) [1]. Future Projections - Revenue projections for 2024-2026: 26.76 billion CNY (2024), 31.47 billion CNY (2025), 34.11 billion CNY (2026) [2][11]. - Target price set at 166.43 HKD (approximately 153.73 CNY) based on a 2.4x adjusted PS ratio for 2024 [2].

Investment Rating - The report assigns a "Buy" rating for the company, Bilibili (BILI), with a current price of $18.30 and a fair value of $20.65 [2][9]. Core Insights - The company reported Q3 2024 earnings with revenue reaching 7.3 billion RMB, exceeding Bloomberg's consensus estimate of 6.7134 billion RMB, reflecting a year-over-year growth of 26% and a quarter-over-quarter growth of 19% [2][6]. - Gross margin improved to 34.9%, up 10 percentage points year-over-year and 5 percentage points quarter-over-quarter, driven by rapid growth in the gaming business [2][6]. - The net profit was reported at -795.15 million RMB, compared to a consensus estimate of -106 million RMB [2][6]. - The gaming revenue was 1.66 billion RMB, significantly above the consensus estimate of 2.07 billion RMB, with a year-over-year growth of 84% and quarter-over-quarter growth of 81% [2][6]. - The report anticipates total revenue for Q4 2024 to reach 7.6 billion RMB, with a year-over-year growth of 20% [6][9]. Revenue and Profit Forecast - The company is expected to achieve total revenue of 26.7 billion RMB and 29.5 billion RMB in 2024 and 2025, respectively, representing year-over-year growth of 18% and 10% [6][9]. - Non-GAAP net profit is projected to be -161 million RMB in 2024 and 1.607 billion RMB in 2025, indicating a significant turnaround [6][9]. - The report highlights that advertising revenue is expected to grow by 28% and 22% in 2024 and 2025, reaching 8.2 billion RMB and 9.9 billion RMB, respectively [6][9]. Financial Metrics - The report provides a detailed financial forecast, indicating that the company's gross margin is expected to improve to 33% and 36% in 2024 and 2025, respectively [6][9]. - The company's operating revenue is projected to grow from 22.528 billion RMB in 2023 to 26.687 billion RMB in 2024, reflecting a growth rate of 18% [7][9]. - The report also notes that the company's sales expense ratio is expected to decrease to 17% and 15% in 2024 and 2025, respectively [8][9].

Investment Rating - The report maintains a "Buy" rating for Bilibili, with an expected price increase of over 20% within the next six months [1]. Core Insights - Bilibili achieved its first positive adjusted net profit, driven by strong growth in game revenue from the game "Three Kingdoms: Strategy" [1]. - The company's Q3 2024 revenue reached 73.1 billion yuan, exceeding Bloomberg's consensus estimate by 2.3% [1]. - Adjusted net profit for the quarter was 2.4 billion yuan, surpassing Bloomberg's consensus estimate by 2.9%, with a gross margin of 34.9%, also above expectations [1]. Revenue Breakdown - **Mobile Games**: Revenue was 18.2 billion yuan, exceeding Bloomberg's estimate by 9.8%, with a year-over-year growth of 84%, primarily driven by the performance of "Three Kingdoms: Strategy" [1]. - **Advertising**: Revenue reached 20.9 billion yuan, slightly above expectations by 0.3%, with a year-over-year increase of 28%, attributed to improved advertising products and efficiency [1]. - **Value-Added Services (VAS)**: Revenue was 28.2 billion yuan, below expectations by 1.2%, with a year-over-year growth of 9% [1]. - **IP and Derivatives**: Revenue was 5.7 billion yuan, exceeding expectations by 7.8%, but showed a year-over-year decline of 2% [1]. Profitability - Adjusted net profit was 2.4 billion yuan, marking a significant improvement from previous losses, with a gross margin increase of 9.9 percentage points year-over-year [1]. - Operating costs were 47.6 billion yuan, with revenue-sharing costs accounting for 29.1 billion yuan [1]. Future Outlook - The report suggests that Bilibili's cost reduction and efficiency improvements are significant, and the company is expected to benefit from its strategy of developing high-quality self-researched games for global distribution [1]. - Revenue forecasts for FY24E-FY26E are projected at -1.3 billion, 20.6 billion, and 38.6 billion yuan respectively [1].

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Insights - The company achieved a revenue of 7.306 billion yuan in Q3 2024, representing a year-over-year increase of 25.85% [5] - The adjusted net profit for Q3 2024 was 236 million yuan, marking a turnaround from loss to profit, successfully meeting the target for adjusted operating profit [5] - The mobile gaming segment exceeded expectations with revenue of 1.818 billion yuan, up 83.8% year-over-year [5] - The advertising business continued to show high growth, with a daily active user count of 107.3 million, a year-over-year increase of 4.4% [5] - The company is expected to achieve revenues of 26.74 billion, 30.17 billion, and 32.84 billion yuan in 2024, 2025, and 2026 respectively, with adjusted net profits projected at -37 million, 1.854 billion, and 2.897 billion yuan for the same years [6] Financial Performance Summary - Total revenue for 2023 was 22.528 billion yuan, with a projected increase to 26.742 billion yuan in 2024, reflecting a growth rate of 19% [7] - The adjusted net profit for 2023 was -3.412 billion yuan, with a significant recovery expected in 2024 to -37 million yuan [7] - The company’s gross margin is projected to improve from 24.2% in 2023 to 39.5% in 2026 [10] - The net profit margin is expected to turn positive in 2025, reaching 2.3% [10] - The company’s total assets are projected to grow from 33.159 billion yuan in 2023 to 35.463 billion yuan in 2026 [9]

Investment Rating - The report maintains a "Buy" rating for Bilibili (09626) [6][8]. Core Views - Bilibili achieved a revenue of 7.3 billion CNY in Q3 2024, representing a year-on-year growth of 26%, driven primarily by gaming and advertising businesses. The adjusted net profit was 240 million CNY, marking the first profitable quarter with a profit margin of 3.2% [6]. - The company announced a share repurchase plan, intending to buy back up to 200 million USD worth of shares over the next two years [7]. - User metrics reached new highs, with a Monthly Active User (MAU) count of 348 million, a year-on-year increase of 2%, and a Daily Active User (DAU) count of 107 million, a year-on-year increase of 4% [7]. - The report highlights the strong performance of the game "Three Kingdoms: Strategizing the World," which contributed significantly to gaming revenue, achieving 1.8 billion CNY in Q3, a year-on-year increase of 84% [10]. - Advertising revenue also saw substantial growth, reaching 2.1 billion CNY in Q3, a historical high with a year-on-year increase of 28% [10]. Financial Summary - Revenue projections for Bilibili are as follows: - 2022: 21,899 million CNY - 2023: 22,528 million CNY - 2024E: 26,738 million CNY - 2025E: 30,657 million CNY - 2026E: 33,038 million CNY [5][14]. - The adjusted net profit forecast for 2024 has been revised to -87 million CNY, while projections for 2025 and 2026 have been increased to 1.71 billion CNY and 3.088 billion CNY, respectively [8]. - The report indicates a significant improvement in gross margin, which reached 35% in Q3, reflecting a year-on-year increase of 10 percentage points [11].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company achieved its first quarterly profit since going public, with a revenue of 7.3 billion yuan in Q3 2024, representing a year-over-year increase of 26% and a quarter-over-quarter increase of 19% [1][3] - The mobile gaming segment saw significant growth, with revenue increasing by 84% year-over-year to 1.823 billion yuan, driven by the success of the exclusive game "Three Kingdoms: Strategy" [3] - The advertising business also performed well, with revenue growing by 28% year-over-year to 2.094 billion yuan, supported by improved advertising products and efficiency [3][5] Summary by Sections Operating Performance - Monthly Active Users (MAU) grew by 2% year-over-year to 348 million, while Daily Active Users (DAU) increased by 4% to 107 million [3] - User engagement metrics improved, with average daily usage time rising from 100 minutes to 106 minutes, and Average Revenue Per User (ARPU) increasing by 23% to 21 yuan [3] Financial Metrics - The company reported a gross margin of 34.9%, up 9.9 percentage points year-over-year and 4.9 percentage points quarter-over-quarter [3] - Adjusted net profit for Q3 2024 was 240 million yuan, a significant improvement from a loss of 860 million yuan in Q3 2023 [3] Mobile Gaming Business - The exclusive game "Three Kingdoms: Strategy" ranked in the top three of the iOS game sales chart for three consecutive seasons, contributing to the mobile gaming revenue surge [3] Value-Added Services - Revenue from value-added services increased by 9% year-over-year to 2.821 billion yuan, driven by growth in live streaming and other services [3] Advertising Business - The advertising revenue growth was primarily attributed to enhancements in advertising products and increased efficiency, with significant contributions from the gaming, e-commerce, and automotive sectors [5]

Core Insights - Bilibili (BILI) reported third-quarter 2024 non-GAAP earnings of 8 cents per share, missing the Zacks Consensus Estimate by 20%, while revenues increased to $1.02 billion, surpassing the estimate by 0.76% [1] - The company's shares have appreciated 52.8% year to date, outperforming the Zacks Computer & Technology sector, which returned 29.3% [2] Revenue Breakdown - Revenues from mobile games, accounting for 24.9% of total revenues, increased 83.8% year over year to RMB 1.82 billion [3] - Value Added Services (VAS) revenues, making up 38.6% of total revenues, increased 8.7% year over year to RMB 2.82 billion [3] - Advertising revenues, which represent 28.7% of total revenues, increased 27.8% year over year to RMB 2.09 billion [3] - Revenues from IP Derivatives and others, comprising 7.8% of total revenues, decreased 2.2% year over year to RMB 567.31 million [3] Operating Performance - The gross profit margin improved to 34.9% from 25% in the year-ago quarter [4] - Research and development (R&D) expenses decreased 15% year over year to RMB 906.1 million, representing 12.4% of sales, a decrease of 600 basis points [4] - Sales & Marketing (S&M) expenses increased 21.2% year over year to RMB 1.2 billion, accounting for 16.5% of sales, a decrease of 60 basis points [4] - General & Administrative (G&A) expenses increased 1.3% year over year to RMB 505.4 million, representing 6.9% of sales, a decrease of 170 basis points [5] - Total operating expenses were RMB 2.61 billion, up 2.2% from the year-ago quarter, with a non-GAAP loss from operations of RMB 272.2 million, improved from RMB 755.4 million in the prior year [5] Financial Position - As of September 30, 2024, cash and cash equivalents totaled RMB 11.7 billion, up from RMB 8.76 billion as of June 30, 2024 [6] - Total debt decreased to RMB 5.02 billion from RMB 5.58 billion as of June 30, 2024 [6] - Cash flow from operating activities was RMB 2.23 billion for the reported quarter, significantly up from RMB 277.4 million in the prior quarter [7] Market Position - BILI currently holds a Zacks Rank 2 (Buy) [8] - Other top-ranked stocks in the sector include Tuya (TUYA), NVIDIA (NVDA), and NetApp (NTAP) [8]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved its first quarterly profit in Q3 2024, driven by continuous growth in gaming and advertising sectors [3][4] - Revenue for the first three quarters of 2024 reached 19.097 billion, a year-on-year increase of 18.04%, with Q3 revenue at 7.306 billion, up 25.85% year-on-year and 19.23% quarter-on-quarter [3] - The adjusted net profit for Q3 2024 was 236 million, marking a turnaround from previous losses [3] - The company is optimistic about the growth potential in gaming, membership, advertising, and IP monetization, leading to an upward revision of profit forecasts for 2024-2026 [3] Financial Performance - In Q3 2024, the gross margin was 34.9%, an increase of 9.9 percentage points year-on-year and 5 percentage points quarter-on-quarter [4] - The sales expense ratio was 16.5%, management expense ratio was 6.9%, and R&D expense ratio was 12.4%, indicating effective cost control [4] - The company expects net profits of -1.227 billion, 302 million, and 1.359 billion for 2024, 2025, and 2026 respectively, with corresponding EPS of -2.9, 0.7, and 3.2 [3][6] User Engagement and Growth - Daily Active Users (DAU) reached 1.07 million in Q3 2024, a year-on-year increase of 4%, while Monthly Active Users (MAU) reached 3.48 million, up 2% year-on-year [5] - The DAU/MAU ratio was 30.75%, indicating improved user engagement [5] - Average daily usage time per user was 106 minutes, a historical high, suggesting increased user retention and potential for enhanced monetization [5]

Investment Rating - The report maintains a "Buy" rating for the company with a target price adjusted to HKD 177, indicating a potential upside of 9% from the current price of HKD 162.4 [9][24]. Core Insights - The company achieved its first adjusted profit in Q3 2024, reporting revenue of RMB 7.31 billion, a year-on-year increase of 26%, surpassing market expectations by 2%. The adjusted net profit for the same quarter was RMB 236 million, with an adjusted profit margin of 3.2% [7][8]. - The company announced a share buyback plan worth USD 200 million, approximately 2.3% of its current market capitalization [7]. - Strong growth in gaming and advertising segments was highlighted, with daily active users increasing by 4.4% year-on-year to 107 million and monthly active users rising by 2.1% to 348 million, both reaching new highs [8]. - The advertising business grew by 28% year-on-year, driven by increased traffic and the gradual release of user commercial value, with expectations for a 22% year-on-year growth in Q4 advertising revenue [8]. - Gaming revenue surged by 84% year-on-year to RMB 1.82 billion, supported by the success of the game "Three Kingdoms: Strategize the World," with expectations for a 76% year-on-year growth in Q4 gaming revenue [8]. Financial Projections - Revenue projections for the company are as follows: FY22 at RMB 21.9 billion, FY23 at RMB 22.5 billion, FY24E at RMB 26.7 billion, FY25E at RMB 29.5 billion, and FY26E at RMB 32.5 billion [6][12]. - The company is expected to achieve an operating profit of RMB 590 million in FY25 and RMB 1.6 billion in FY26, with adjusted net profits projected to reach RMB 2.2 billion in FY25 and RMB 3.2 billion in FY26 [6][12]. - The gross margin for Q3 2024 was reported at 34.9%, with expectations for further improvement to 36% in Q4 [8]. Market Performance - The company's stock has a 52-week price range of HKD 67.8 to HKD 238.8, with a total market capitalization of HKD 62.05 billion [9][24]. - The report indicates a potential upside of 24% for the US-listed shares, with a target price of USD 23, compared to the current price of USD 18.59 [9][24]. Conclusion - The report emphasizes the company's strong performance in gaming and advertising, alongside its first adjusted profit, as key drivers for maintaining a positive outlook and "Buy" rating [9][24].

Investment Rating - Buy (Maintained) [1] Core Views - Bilibili achieved its first positive Non-GAAP net profit in 2024Q3, with revenue of RMB 7.306 billion, up 26% YoY and 19% QoQ, surpassing Bloomberg consensus estimates of RMB 7.144 billion [1] - Non-GAAP net profit reached RMB 236 million, exceeding Bloomberg consensus estimates of RMB 217 million [1] - The company announced a share repurchase plan of up to USD 200 million within the next 24 months [1] Financial Performance - Gross margin increased significantly to 34.9% in 2024Q3, up 9.9pct YoY and 4.9pct QoQ, marking the ninth consecutive quarter of sequential improvement [2] - Sales/management/R&D expense ratios were 16.5%, 6.9%, and 12.4% respectively, showing YoY and QoQ declines [2] - Revenue from gaming business surged to RMB 1.823 billion in 2024Q3, up 84% YoY and 81% QoQ, driven by the success of the SLG game "Three Kingdoms: Strategic Conquest" [3] - Advertising revenue reached RMB 2.094 billion in 2024Q3, up 28% YoY and 3% QoQ, with strong growth in performance advertising [4] - Value-added services revenue was RMB 2.821 billion in 2024Q3, up 9% YoY and 10% QoQ, supported by growth in live streaming and premium membership services [4] Business Outlook - The company's gaming and advertising businesses are expected to continue their upward trajectory, with further potential for high-margin growth [2][4] - The game "Three Kingdoms: Strategic Conquest" is expected to maintain strong performance domestically and explore overseas markets in the coming years [3] - New game releases, such as "Jujutsu Kaisen," are anticipated to contribute to future growth, with a focus on younger demographics [3] - Advertising business is projected to sustain high growth rates, driven by improved commercialization infrastructure and increased advertiser budgets [4] Financial Forecasts - Revenue for 2024-2026 is forecasted at RMB 26.7 billion, RMB 30.2 billion, and RMB 32.6 billion respectively [4] - Non-GAAP net profit for 2024-2026 is expected to be RMB -103 million, RMB 1.935 billion, and RMB 3.027 billion respectively [4] - The 2025-2026 Non-GAAP PE ratios are estimated at 29x and 19x based on the current stock price [4] Market Data - Closing price: USD 18.59 [6] - 52-week low/high: USD 8.80/31.77 [6] - Market capitalization: USD 7.831 billion [6] - Price-to-book ratio: 4.04x [6]