Core Viewpoint - The article discusses the unexpected decline in stock prices of major Hong Kong-listed internet companies, including Tencent, JD.com, and Bilibili, despite their third-quarter earnings exceeding market expectations. This phenomenon has left some investors confused as the Hang Seng Tech Index continues to fall [3]. Group 1: Company Performance - Tencent Holdings reported a revenue of 192.87 billion yuan for Q3 2025, a year-on-year increase of 15%, and a net profit of 63.13 billion yuan, up 19% year-on-year. Analysts had previously predicted net profits between 53 billion and 60 billion yuan [5]. - The company's capital expenditure related to artificial intelligence saw a decline, with Q3 capital expenditure dropping 32% quarter-on-quarter and 24% year-on-year to 12.98 billion yuan [5]. - The revenue from Tencent's "FinTech and Business Services" segment was 58.17 billion yuan, showing a growth of less than 10% year-on-year, which raised concerns about the lack of highlights in the earnings report [6]. Group 2: Market Reactions - Despite Tencent's strong earnings, the stock price fell due to profit-taking by investors who had already anticipated the positive results. This indicates that the stock price had already factored in the good news prior to the earnings announcement [6][7]. - The decline in stock prices is also attributed to broader market conditions, with the Hang Seng Index experiencing three pullbacks after surpassing 27,000 points, leading to reduced trading volumes [10][11]. - The market's risk appetite appears neutral in the short term, influenced by uncertainties surrounding the Federal Reserve's interest rate decisions, which could impact global risk sentiment [10]. Group 3: Future Outlook - Analysts suggest that the stock prices of Tencent and other leading companies may rebound if the broader market conditions improve, particularly after the Federal Reserve's upcoming interest rate decision [6][10]. - The article emphasizes the importance of monitoring liquidity and sentiment indicators, as well as foreign capital inflows, to identify potential entry points for investing in technology leaders [8].

Core Viewpoint - The Hong Kong stock market has seen a significant decline in trading volume despite strong earnings reports from major internet companies like Tencent, JD.com, and Bilibili, leading to investor confusion regarding market direction and future performance [1][2]. Group 1: Company Performance - Tencent Holdings reported Q3 2025 revenue of 192.87 billion yuan, a 15% year-on-year increase, and a net profit of 63.13 billion yuan, up 19% year-on-year, surpassing market expectations [2][3]. - The capital expenditure related to artificial intelligence has decreased, with Q3 capital spending falling 32% quarter-on-quarter and 24% year-on-year to 12.98 billion yuan [2]. - The revenue from Tencent's financial technology and enterprise services segment grew by less than 10%, raising concerns about the growth potential of high-value business areas [3]. Group 2: Market Trends - The Hang Seng Index has experienced three significant pullbacks after surpassing 27,000 points, with trading volume dropping from over 400 billion HKD to around 217.6 billion HKD [1][6]. - Investor sentiment appears cautious, influenced by external uncertainties such as the potential for a Federal Reserve interest rate cut in December, which is currently projected at a 50.4% probability [6][8]. - The decline in trading volume is attributed to a lack of major market events and narrow trading ranges, which have suppressed short-term trading activity [7]. Group 3: Investor Sentiment - Investors are advised to monitor liquidity and sentiment indicators, as the current market environment reflects a mix of structural fund differentiation and profit-taking behavior following earnings announcements [4]. - The overall market sentiment remains neutral, with expectations that the market may enter a consolidation phase until clearer signals emerge from the Federal Reserve's decisions and domestic economic data [6][7].

Core Viewpoint - The Hang Seng Index closed down approximately 0.71%, while the Hang Seng Tech Index fell by about 0.96%, indicating a negative trend in the Hong Kong stock market [1] Group 1: Company Performance - Lenovo Group and Trip.com Group both experienced declines of over 3% [1] - Baidu Group and Li Auto saw declines exceeding 2% [1] - Bilibili and Tongcheng Travel dropped by more than 1% [1] - Semiconductor Manufacturing International Corporation (SMIC) and Tencent Holdings had slight decreases [1] - Hua Hong Semiconductor and Meituan experienced slight increases [1]

Core Viewpoint - Jianyin International has raised the target price for Bilibili (09626, BILI.US) by 8% to HKD 230.1 and by 14% to USD 29.5, maintaining an "outperform" rating due to its sticky user base, vibrant ecosystem, and significant profit potential [1]. Financial Performance - Bilibili achieved robust financial and operational performance in Q3, with advertising revenue contributing 33% to total revenue, driven by sustainable growth in advertising business [1]. - The number of advertisers increased by 16% year-on-year, with revenue growth rates for AI, automotive, digital products, home appliances, and home decor advertisers at 90%, 35%, 60%, 60% respectively [1]. User Engagement - Bilibili has 117 million daily active users, with an average daily usage time of 112 minutes and a stable 12-month retention rate of 80%, providing a solid foundation for future growth [2]. Game Development - The self-developed game "Duckov" has sold over 3 million copies globally, validating Bilibili's R&D capabilities [2]. - The upcoming release of "Duckov" for mobile and console platforms is expected to generate strong market response, contributing to growth potential alongside other new game releases [1]. Community and IP Growth - Bilibili's irreplaceable community moat is anticipated to benefit the company in the long term, with growth in IP derivative products driven by popular domestic anime content expected to initiate a second wave of growth [2].

Core Viewpoint - Jianyin International has raised the target price for Bilibili (09626, BILI.US) by 8% to HKD 230.1 and by 14% to USD 29.5, maintaining an "outperform" rating due to its sticky user base, vibrant ecosystem, and significant profit potential [1][2]. Financial Performance - Bilibili achieved robust financial and operational performance in Q3, with advertising revenue contributing 33% to total revenue, driven by sustainable growth in advertising business [1]. - The number of advertisers increased by 16% year-on-year, with revenue growth rates for AI, automotive, digital products, home appliances, and home decor advertisers at 90%, 35%, 60%, 60% respectively [1]. User Engagement - Bilibili has 117 million daily active users, with an average daily usage time of 112 minutes and a stable 12-month retention rate of 80%, providing a solid foundation for future growth [2]. Game Development - The self-developed game "Duckov" has sold over 3 million copies globally, validating Bilibili's R&D capabilities [2]. - The upcoming release of "Duckov" for mobile and console platforms is expected to generate strong market response, contributing to growth potential alongside other new game releases [1]. Community and IP Growth - Bilibili's irreplaceable community moat is anticipated to benefit long-term growth, with IP derivative merchandise driven by popular domestic anime content expected to initiate a second wave of growth [2].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company reported a significant increase in Q3 performance, with revenue reaching 76.85 million yuan (up 5% year-on-year and quarter-on-quarter), and a net profit of 4.70 million yuan (turning profitable year-on-year and up 115% quarter-on-quarter) [4] - The growth in revenue is driven by an increase in advertising revenue, which reached 25.70 million yuan (up 23% year-on-year and 5% quarter-on-quarter), and an increase in value-added services [4] - The company is optimistic about the ongoing commercialization and growth in gaming, projecting net profits of 10.24 million yuan, 20.86 million yuan, and 28.50 million yuan for 2025-2027, respectively [4] Financial Summary - For 2025, the estimated revenue is 30,277 million yuan, with a year-on-year growth of 12.8% [6] - The estimated net profit for 2025 is 1,024 million yuan, reflecting a significant year-on-year increase of 176% [6] - The gross margin is projected to reach 36.7% in 2025, up from 24.2% in 2023 [6] User Engagement and Community Growth - The company achieved a record high in user engagement, with Daily Active Users (DAU) at 117 million (up 10% year-on-year) and Monthly Active Users (MAU) at 376 million (up 8% year-on-year) [5] - The average daily usage time reached 112 minutes, indicating strong user retention and engagement [5] - The number of paying users exceeded 35 million, with a year-on-year increase of 17% [5]

Core Viewpoint - The report from China Merchants Securities International indicates an optimistic outlook for Bilibili, with an upgrade in non-GAAP net profit forecasts and a "Buy" rating for its US stock, driven by strong revenue growth and effective cost control [1]. Financial Performance - Bilibili's revenue in Q3 increased by 5% year-on-year, meeting expectations [1]. - Non-GAAP operating profit and net profit exceeded expectations by 6% and 22%, respectively, attributed to better-than-expected cost control and efficiency improvements driven by AI [1]. Advertising and Gaming Segments - The advertising business is expected to perform strongly, with projected year-on-year revenue growth of 22% in Q4 and 19% in the following year, supported by rich content and a young user base [1]. - The gaming segment is anticipated to recover sequentially due to new popular products [1]. Long-term Outlook - The company is viewed positively for its ability to operate classic products and adapt to the preferences of younger users [1]. - The forecast for revenue growth is set at 13% and 9% for the next two years, with non-GAAP net profits expected to reach 2.5 billion and 3.5 billion yuan, respectively [1]. Investment Rating - China Merchants Securities International has assigned a "Buy" rating for Bilibili's US stock with a target price of $30 and a target price of 234 HKD for its H-shares [1].

Core Viewpoint - The Hong Kong stock market is experiencing a decline, with the Hang Seng Index down 0.80%, the Hang Seng Tech Index down 1.19%, and the Hang Seng China Enterprises Index down 0.79%. However, the technology sector remains a key focus driven by AI developments, with potential benefits from improved US-China relations and a reduction in profit expectation disturbances from the internet delivery platform subsidy wars [1]. Group 1: Market Performance - The Hong Kong stock market's half-day trading volume reached HKD 118.468 billion [1]. - Notable declines in the technology sector include Xiaopeng Motors down 2.99%, Baidu Group down 2.82%, and Bilibili down 2.68% [1]. - Conversely, Hua Hong Semiconductor rose by 1.75% and SMIC increased by 0.41% [1]. Group 2: Industry Insights - The AI-driven narrative in the Hong Kong stock market is expected to gradually reflect in domestic markets, enhancing risk appetite due to stabilizing US-China relations [1]. - The leading technology companies in Hong Kong are positioned to benefit from the AI industry transformation, with an upward trend in the AI industry cycle further confirming their relative advantages [1]. Group 3: Related ETFs - The Hong Kong Stock Connect Technology ETF (159101) covers the entire technology industry chain [2]. - The Hang Seng Internet ETF (513330) focuses on leading internet companies [2].

Core Viewpoint - Bilibili has stabilized its profitability expectations and returned to an expansion cycle, with significant growth in revenue and net profit in Q3 2025, indicating strong operational efficiency and user engagement [5][9]. Financial Performance - In Q3 2025, Bilibili's revenue increased by 5% year-on-year to 7.69 billion yuan, achieving profitability for five consecutive quarters, with a net profit of 470 million yuan compared to a net loss of 79.8 million yuan in the same period last year [5][7]. - Adjusted net profit surged by 233% year-on-year to 786 million yuan, marking a historical high, with an adjusted net profit margin of 10.2%, up from 3.2% in Q3 2024 [7][11]. - Gross profit rose by 11% to 2.82 billion yuan, with a gross margin of 36.7%, continuing a trend of growth for 13 consecutive quarters [7][11]. User Engagement and Community Growth - Bilibili's monthly active users (MAU) increased by 8% year-on-year to 376 million, while daily active users (DAU) grew by 9% to 117 million, indicating a high level of community engagement [14][16]. - The average daily usage time per user reached 112 minutes, an increase of 6 minutes year-on-year, reflecting the platform's content attractiveness [16][19]. - The number of paying users increased by 17% year-on-year to 35 million, with significant growth in live streaming and premium membership subscriptions [13][14]. Revenue Breakdown - Revenue from value-added services, advertising, gaming, and IP derivatives accounted for 39%, 33%, 20%, and 8% of total revenue, respectively [11][23]. - Value-added services revenue grew by 7% year-on-year to 3.02 billion yuan, driven by the younger generation's willingness to pay for content [13][19]. - Advertising revenue increased by 23% year-on-year to 2.57 billion yuan, benefiting from optimized ad products and improved ad effectiveness [17][19]. Gaming Business Insights - Bilibili's gaming revenue decreased by 17% year-on-year to 1.51 billion yuan, primarily due to a high base from the previous year [23][25]. - The company is focusing on long-term game operations, with successful titles like "Fate/Grand Order" and "Blue Archive" contributing stable income [25][29]. - New game launches, such as "Three Kingdoms: Hundred Generals Card," are expected to enhance Bilibili's gaming portfolio and user engagement [25][28]. Advertising Strategy and Market Position - Bilibili is enhancing its advertising strategy by focusing on vertical industry budgets, with significant growth in sectors like digital home appliances and education [19][20]. - The company is leveraging AI technology to improve ad targeting and efficiency, with AI-related ad revenue growing by nearly 90% [19][20]. - Bilibili's market share in advertising is steadily increasing, with a 30% growth in ad revenue during the Double Eleven shopping festival [19][21].

Core Viewpoint - Goldman Sachs has raised the target price for Bilibili-W (09626, BILI.US) from HKD 234 to HKD 240, an increase of 2.6%, and from USD 30 to USD 30.8, an increase of 2.7%, while maintaining a "Buy" rating [1] Group 1: Company Performance - Bilibili's Q3 performance and management's comments during the non-deal roadshow (NDR) reaffirm Goldman Sachs' investment thesis [1] - The company is maintaining a high-quality content community with strong user engagement [1] Group 2: Revenue and Profit Expectations - Goldman Sachs has adjusted Bilibili's revenue forecasts for 2025-2027 upwards by 0%-1%, reflecting better-than-expected advertising and other revenues [1] - The non-GAAP net profit forecast for 2025 has been increased by 5% [1] Group 3: Growth Potential - Bilibili is leveraging higher advertising conversion rates and AI technology for traffic monetization [1] - The new gaming projects have significant growth potential through 2026 [1]