Investment Rating - Investment Rating: Buy (Maintain) [3] Core Views - The company achieved revenue of 7.003 billion yuan in Q1 2025, representing a year-on-year increase of 24%. Adjusted net profit attributable to shareholders was 362 million yuan, up 179% year-on-year, indicating improved operational conditions [6] - The game "Three Kingdoms: Strategy" is expected to contribute significantly to revenue growth in Q2 due to its anniversary season, with major updates and new heroes planned [7] - The company reported a daily active user (DAU) of 107 million, a year-on-year increase of 4.2%, and a monthly active user (MAU) of 370 million, indicating a stable growth in core users [8] - Revenue projections for 2025, 2026, and 2027 are 30.04 billion, 33.07 billion, and 36.26 billion yuan respectively, with adjusted net profits expected to be 1.82 billion, 2.81 billion, and 3.92 billion yuan [9] Financial Summary - For 2024A, total revenue is projected at 26.832 billion yuan, with a year-on-year growth of 19.1%. Adjusted net profit is expected to be -39 million yuan, showing a significant recovery in subsequent years [11] - The company is expected to achieve an EPS (NON-GAAP) of -0.09 in 2024, improving to 4.27 in 2025, 6.59 in 2026, and 9.18 in 2027 [13] - The gross margin is projected to increase from 32.7% in 2024 to 39.1% in 2027, indicating improving profitability [13]

Group 1 - The Hang Seng Tech Index saw its intraday decline widen to 1%, with a momentary shift to positive territory during the trading session [1] - Bilibili (09626.HK) experienced a drop of over 4%, leading the decline among constituent stocks [1]

Core Insights - The company reported a revenue of 7 billion yuan in Q1 2025, representing a year-on-year increase of 24%, with a Non-GAAP net profit of 360 million yuan, marking a return to profitability [1] - The gross margin has been continuously improving, reaching 36.3% in Q1 2025, with high-margin businesses like gaming and advertising contributing 54% to the revenue [1] - Monthly active users reached a record high of 368 million, with an average daily usage time of 108 minutes, indicating strong user engagement [1] Revenue Breakdown - Advertising revenue was 2 billion yuan in Q1 2025, up 20% year-on-year, driven by strong growth in performance advertising [2] - Gaming revenue reached 1.73 billion yuan, a significant increase of 76% year-on-year, primarily fueled by the game "Three Kingdoms: Strategy" [2] - Value-added services generated 2.81 billion yuan in revenue, an 8% increase year-on-year, with a stable base of 23.5 million premium members [2] Future Projections - The company forecasts revenues of 30.7 billion yuan, 33.5 billion yuan, and 36.1 billion yuan for 2025, 2026, and 2027 respectively, with Non-GAAP net profits of 2.147 billion yuan, 3.14 billion yuan, and 3.972 billion yuan for the same years [3] - Current stock price corresponds to P/E ratios of 25.66, 17.55, and 13.87 for 2025, 2026, and 2027 respectively, maintaining a "buy" rating [3]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 194.00 HKD (178.27 CNY) [2][5]. Core Insights - The company's revenue is expected to grow significantly, driven by the upcoming S8 anniversary season of the game "Three Kingdoms: Strategy" and improvements in advertising efficiency. Revenue projections for 2025, 2026, and 2027 are 31.2 billion, 34.1 billion, and 35.9 billion CNY respectively [2]. - The report highlights a strong performance in the advertising and gaming sectors, with Q1 2025 revenue reaching 7.0 billion CNY, a year-on-year increase of 23.6% [10]. - The company is expected to benefit from a growing user base and improved monetization capabilities as users mature [2]. Financial Projections - Revenue for 2025 is projected at 31,195 million CNY, with a year-on-year growth of 16.26% [3][11]. - The company anticipates a Non-GAAP net profit of 892 million CNY in 2025, recovering from a loss of 1,347 million CNY in 2024 [3][11]. - Gross margin is expected to improve to 38.05% in 2025, up from 24.16% in 2023 [3][11]. Key Performance Metrics - The report indicates that the company's daily active users (DAU) reached 36.8 million in Q1 2025, reflecting an 8.2% year-on-year increase [10]. - Advertising revenue for Q1 2025 was 2.0 billion CNY, a 19.7% increase year-on-year, driven by strong growth in performance-based advertising [10]. - The gaming segment saw a revenue of 1.7 billion CNY in Q1 2025, marking a 76% increase year-on-year, primarily due to the success of "Three Kingdoms: Strategy" [10].

Core Viewpoint - Bilibili (09626.HK) has issued 10.3 million Class Z ordinary shares at a price of HKD 140.10 per share [1] Company Summary - The issuance of shares is part of Bilibili's strategy to raise capital [1] - The total capital raised from this issuance amounts to approximately HKD 1.44 billion [1] Industry Context - The issuance reflects ongoing trends in the tech and entertainment sectors, where companies are increasingly seeking to bolster their financial positions through equity financing [1] - Bilibili's move may indicate confidence in its growth prospects despite market volatility [1]

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [10][8]. Core Insights - The company has entered a profitable phase, with significant improvements in user value and operational efficiency, particularly in its gaming and advertising segments [4][5]. - The first quarter of 2025 saw a revenue of 7 billion HKD, representing a year-on-year growth of 24%, and a Non-GAAP net profit of 360 million HKD, marking a turnaround to profitability [4][5]. - The company is experiencing record-high monthly active users (36.8 million) and daily usage time (108 minutes), indicating strong user engagement and growth [5]. Financial Performance - Revenue projections for 2025, 2026, and 2027 are 30.688 billion HKD, 33.499 billion HKD, and 36.145 billion HKD respectively, with corresponding Non-GAAP net profits of 2.147 billion HKD, 3.140 billion HKD, and 3.972 billion HKD [3][8]. - The company has shown a consistent increase in gross margin, reaching 36.3% in Q1 2025, with high-margin businesses like gaming and advertising contributing significantly to revenue [5][6]. - The average revenue per user is expected to grow, supported by a stable base of premium members and a thriving ecosystem for content creators [7]. Business Segments - The gaming segment, particularly driven by the title "Three Kingdoms: Strategy", has shown a remarkable revenue increase of 76% year-on-year, contributing 17.3 billion HKD in Q1 2025 [6]. - Advertising revenue reached 2 billion HKD in Q1 2025, up 20% year-on-year, largely due to the growth of performance-based advertising driven by AI capabilities [6]. - Value-added services, including premium memberships, generated 2.81 billion HKD in Q1 2025, with a stable membership base of 23.5 million [7].

Core Viewpoint - Bilibili (09626.HK) plans to use the net proceeds from its fundraising to enhance its content ecosystem, accelerate the creation of IP assets, and unlock their intrinsic potential [1] Group 1 - The company aims to strengthen its content ecosystem through strategic investments [1] - The focus on accelerating IP asset creation indicates a commitment to expanding its intellectual property portfolio [1] - The intention to release the intrinsic potential of these assets suggests a long-term growth strategy [1]

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Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [10][8]. Core Views - The company is entering 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 Summary - Revenue is projected to grow from HKD 22.53 billion in 2023 to HKD 30.69 billion in 2025, reflecting a compound annual growth rate (CAGR) of approximately 14.37% [3][8]. - Non-GAAP net profit is expected to turn positive in 2025, reaching HKD 2.15 billion, with a significant improvement in profitability metrics [3][8]. - The company achieved a Non-GAAP net profit of HKD 360 million in Q1 2025, marking a turnaround from previous losses [4][5]. User Engagement - Monthly active users reached a record high of 368 million in Q1 2025, with an average daily usage time of 108 minutes [5][8]. - The number of paying users has also increased, with 32 million monthly paying users reported [5][8]. Revenue Breakdown - In Q1 2025, revenue from the gaming segment was HKD 1.73 billion, a year-on-year increase of 76%, contributing significantly to overall revenue growth [6][8]. - Advertising revenue reached HKD 2 billion in Q1 2025, up 20% year-on-year, driven by strong performance in effective advertising [6][8]. - Value-added services generated HKD 2.81 billion in Q1 2025, with a stable base of premium members [7][8].

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].