Investment Rating - The report maintains a "Buy" rating for the company, based on improvements in profitability and revised revenue forecasts for 2024-2026 [5][8]. Core Insights - The company achieved its first quarterly profit, with a significant revenue increase of 26% year-on-year, reaching 7.3 billion yuan in Q3 2024. The revenue breakdown includes value-added services (2.8 billion yuan), advertising (2.1 billion yuan), games (1.8 billion yuan), and IP derivatives (600 million yuan) [3][4]. - The gross margin improved to 35%, a 10 percentage point increase from the previous year, attributed to substantial revenue growth while keeping operational costs stable [3]. - The company expects to continue enhancing its profitability, focusing on commercial monetization through high-margin businesses like advertising and gaming, while also fostering community growth [4]. Financial Performance Summary - Revenue for 2024 is projected at 26.69 billion yuan, with a year-on-year growth rate of 18.5%. The forecasts for 2025 and 2026 are 30.31 billion yuan and 34.07 billion yuan, respectively, with growth rates of 14% and 12% [5][20]. - Non-GAAP net profit is expected to improve significantly, with projections of -175 million yuan in 2024, followed by positive net profits of 1.99 billion yuan in 2025 and 3.36 billion yuan in 2026 [5][20]. - The company’s gross profit margin is anticipated to rise to 32.7% in 2024, further increasing to 36.6% in 2025 and 38% in 2026 [20][23]. Advertising and Game Revenue Growth - Advertising revenue grew by 28% year-on-year to 2.1 billion yuan in Q3 2024, driven by enhanced advertising products and efficiency. The company is implementing a multi-faceted advertising strategy to expand its market reach [4]. - Game revenue saw an impressive 84% year-on-year increase, reaching 1.8 billion yuan, with notable contributions from popular titles [3][4]. Future Outlook - The company aims to maintain a dual focus on commercial growth and community user growth post-profitability, leveraging its monetization strategies to support content creators and enhance community engagement [4]. - The target price for the company's stock is set at 21 USD or 162 HKD, reflecting a P/E ratio of 32x for 2025 and 19x for 2026 [5].

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 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]

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 - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [6]. Core Insights - The company achieved profitability for the first time since its listing, with a significant increase in gross profit margin and a strong performance in its gaming and advertising segments [1][2]. - The gaming revenue reached 1.82 billion HKD in Q3 2024, representing a year-on-year growth of 84%, driven by the success of the game "Three Kingdoms: Strategy of the World" [1]. - Advertising revenue also saw a robust increase of 28% year-on-year, totaling 2.09 billion HKD in Q3 2024, supported by enhanced capabilities in the e-commerce sector [1]. Financial Performance Summary - In Q3 2024, the company reported revenue of 7.31 billion HKD, a year-on-year increase of 16%, and a Non-GAAP net profit of 236 million HKD, marking a turnaround from losses [1]. - The gross profit margin improved to 34.9%, up 9.88 percentage points year-on-year, with gross profit increasing by 76% to 2.55 billion HKD [1]. - The company plans to repurchase up to 200 million USD of its publicly traded securities over the next 24 months, enhancing shareholder returns [1]. User Engagement and Community Development - The company reported an average of 107 million daily active users in Q3 2024, a 4% increase year-on-year, with an average usage time of 106 minutes per day, up 6% [1]. - Monthly interactions within the community reached 19.3 billion, reflecting a 14% year-on-year growth, indicating a healthy ecosystem [1]. Future Projections - Revenue forecasts for 2024, 2025, and 2026 are projected at 26.74 billion HKD, 31.21 billion HKD, and 34.76 billion HKD, respectively [2]. - Non-GAAP net profits are expected to improve significantly, with projections of -0.07 billion HKD in 2024, 2.24 billion HKD in 2025, and 3.76 billion HKD in 2026 [2].

Good day and welcome to the Bilibili Search Quarter 2024 Financial Results and Business Updates conference call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Juliet Yang, Executive Director of Investor Relations. Please go ahead. Thank you, Operator. During this call, we'll discuss our business outlook and make forward-looking statements. These comments are based on our predictions and expectations as of today. Actual events or results could differ materially f ...