Investment Rating - The report maintains an "Outperform" rating for Bilibili-W (09626.HK) [5][3] Core Views - The company's adjusted net profit turned positive, indicating continuous improvement in operational quality. In Q1 2025, Bilibili achieved revenue of 7.003 billion yuan, a year-on-year increase of 24%, with operating profit growing by 58% to 2.539 billion yuan. The net loss narrowed to 0.1 billion yuan, a 99% year-on-year reduction, and adjusted net profit reached 0.362 billion yuan, compared to a loss of 0.456 billion yuan in the same period last year [1][3] - User growth remains strong, with MAU and DAU reaching 368 million and 107 million respectively in Q1 2025, representing year-on-year growth of 8% and 4%. The average user age is now 26 years, reflecting an improving commercialization environment [2][3] - The advertising business performed well, with Q1 revenue of 1.998 billion yuan, a 20% year-on-year increase, driven by significant growth in performance-based advertising. The mobile gaming segment saw a remarkable 76% year-on-year revenue increase to 1.731 billion yuan, largely due to the success of the game "Three Kingdoms: Strategizing the World" [2][3] Summary by Sections Financial Performance - In Q1 2025, Bilibili's revenue was 7.003 billion yuan, up 24% year-on-year, with a significant improvement in operating cash flow to 1.302 billion yuan from 0.638 billion yuan in the previous year [1] - The company expects revenues of 30.161 billion yuan, 33.304 billion yuan, and 36.683 billion yuan for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 12%, 10%, and 10% [3][4] User Engagement - Bilibili's MAU and DAU reached 368 million and 107 million in Q1 2025, with daily average usage time increasing to 108 minutes [2][3] - The average age of users has risen to 26 years, indicating a broader demographic appeal and improved monetization potential [2][3] Revenue Streams - The revenue breakdown for Q1 2025 shows that value-added services accounted for 40%, advertising for 28%, and gaming for 25% of total revenue [24] - The value-added services revenue grew by 11% year-on-year, while advertising revenue increased by 20% [2][3] Future Outlook - The report projects that Bilibili will achieve net profits of 0.756 billion yuan, 1.761 billion yuan, and 2.945 billion yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 1.77, 4.12, and 6.89 yuan [3][4]

Investment Rating - The report maintains an "Outperform" rating for Bilibili-W (09626.HK) [5][3][47] Core Views - The company has achieved positive adjusted net profit of 362 million yuan in Q1 2025, a significant improvement from a loss of 456 million yuan in the same period last year, indicating continuous improvement in operational quality [1][3] - Revenue for Q1 2025 reached 7.003 billion yuan, representing a year-on-year growth of 24%, with operating cash flow also showing significant improvement [1][3] - The user base continues to grow, with MAU and DAU reaching 368 million and 107 million respectively, reflecting a year-on-year increase of 8% and 4% [2][3] Summary by Sections Financial Performance - In Q1 2025, the company reported revenue of 7.003 billion yuan, up 24% year-on-year, and an operating profit margin improvement with gross profit increasing by 58% to 2.539 billion yuan [1][3] - The adjusted net profit turned positive at 362 million yuan, compared to a loss of 456 million yuan in Q1 2024 [1][3] - The company expects revenues for 2025, 2026, and 2027 to be 30.161 billion yuan, 33.304 billion yuan, and 36.683 billion yuan respectively, with year-on-year growth rates of 12%, 10%, and 10% [3][4] User Growth and Engagement - The average user age has reached 26 years, with daily active users spending an average of 108 minutes on the platform [2][14] - The number of monthly paying users reached a record high of 32 million, with the number of effective premium members at 23.5 million [2][18] Revenue Streams - Revenue from advertising in Q1 2025 was 1.998 billion yuan, a 20% increase year-on-year, driven by significant growth in performance-based advertising [2][3] - The gaming segment saw revenue of 1.731 billion yuan in Q1 2025, a remarkable 76% increase year-on-year, largely due to the success of the game "Three Kingdoms: Strategize the World" [2][3] - Value-added services generated revenue of 2.2807 billion yuan, an 11% increase year-on-year, benefiting from membership and live streaming services [2][3] Future Outlook - The report projects that the company will achieve profitability in 2025, with net profits expected to be 756 million yuan, 1.761 billion yuan, and 2.945 billion yuan for 2025, 2026, and 2027 respectively [3][4] - The company is positioned well for growth in advertising, gaming, and value-added services, supported by advancements in AI technology and a stable regulatory environment [3][47]

Group 1 - Bilibili (BILI) has recently reached a key level of support and has overtaken the 200-day moving average, indicating a long-term bullish trend [1] - BILI shares have increased by 8.8% over the past four weeks, and the stock is currently rated as Zacks Rank 2 (Buy), suggesting potential for continued growth [2] - Positive earnings estimate revisions support the bullish outlook for BILI, with no estimates decreasing in the past two months and one estimate increasing, alongside a rise in the consensus estimate [3]

Group 1 - The Hong Kong mobile gaming stocks have shown strong performance, with Zhongjiu Mobile (00302.HK) rising over 4% [1] - Bilibili (09626.HK) has increased by more than 3% [1] - Other companies such as NetEase (09999.HK) and Blueport Interactive (08267.HK) also experienced gains [1]

Industry Dynamics - In May, a total of 130 domestic games and 14 imported games received approval for publication, marking a new high for the number of games approved in a single month in recent years [4] - Sensor Tower reported that global mobile game revenue in April reached approximately $6.48 billion, a month-over-month decrease of 4.5%, with Tencent's "Honor of Kings" topping the revenue chart [5] - Guangdong province introduced policies to support high-quality development in the gaming industry, focusing on original game production, technological innovation, and the establishment of service centers for game companies [6] Company Developments - Tencent launched an innovative project called "Hunyuan-Game," an AI-driven content production engine aimed at revolutionizing game asset generation and production processes [7] - Bilibili reported a 76% year-over-year increase in gaming revenue for Q1 2025, reaching 1.731 billion RMB, contributing significantly to the company's overall revenue growth [8] - NetEase held an online event announcing 9 new games, including titles like "Destiny: Stars" and "Marvel: Secret Magic" [10] - MiHoYo established a new company, Original Sea Technology, with a registered capital of 80 million RMB, focusing on game development and AI applications [11] - Bilibili's game "Shining! Yujun Girl" was relaunched after being offline for 622 days, with new version updates completed [12] Regulatory and Competitive Landscape - The U.S. Federal Trade Commission officially withdrew its lawsuit against Microsoft's acquisition of Activision Blizzard, indicating regulatory approval for the deal [13] - Nintendo showcased the design of the Switch 2 cartridge, featuring a color change from black to red [14] - The first Hero Asia Cup (ACL) was successfully held in Shanghai, with over 1,200 teams and more than 10,000 participants, linking with the popular esports event Saudi Esports World Cup [16]

Investment Rating - The report maintains an "Accumulate" investment rating for the company [2][6] Core Views - The company achieved a revenue of 7 billion yuan in Q1 2025, representing a year-on-year growth of 24%, and an adjusted net profit of 360 million yuan, marking a turnaround from a net loss of 460 million yuan in the same period last year [1][5] - The gross profit reached 2.539 billion yuan, with a gross margin of 36.3%, an increase of 8 percentage points year-on-year, indicating a significant improvement in profitability [5][6] - The company’s operational cash flow was 1.302 billion yuan, reflecting strong cash generation capabilities [5] Revenue Breakdown - Value-added services revenue was 2.807 billion yuan, up 11% year-on-year, driven by growth in live streaming and membership services [5] - Advertising revenue reached 1.998 billion yuan, a 20% increase, primarily due to growth in performance-based advertising [5] - Mobile gaming revenue surged to 1.731 billion yuan, a remarkable 76% increase, attributed to the strong performance of the exclusive SLG game "Three Kingdoms: Strategize the World" [5] - Revenue from IP derivatives and other businesses was 467 million yuan, down 4% year-on-year [5] User Engagement and Content Strategy - The company reported daily active users of 107 million and monthly active users of 368 million, with an average daily usage time of 108 minutes [5] - The company successfully positioned itself as the exclusive bullet screen video partner for the Spring Festival Gala, attracting over 100 million viewers on New Year's Eve [5] - The company continues to focus on high-quality original content, with notable successes in various series and animations [5] Financial Projections - The company expects revenues to reach 30.856 billion yuan, 34.559 billion yuan, and 37.324 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding adjusted net profits of 1.965 billion yuan, 2.856 billion yuan, and 3.696 billion yuan [7][9] - The projected PE ratios for 2025, 2026, and 2027 are 28.9, 19.9, and 15.4, respectively, indicating a favorable valuation outlook [7][10]

Investment Rating - The report maintains a "Recommended" rating for Bilibili (BILI), expecting it to outperform the benchmark index by 10%-20% over the next six months [16]. Core Insights - Bilibili's Q1 2025 financial results showed revenue of 7 billion yuan, a year-over-year increase of 24%, aligning with Bloomberg consensus expectations. The gross profit reached 2.54 billion yuan, up 58% year-over-year, with a gross margin of 36.3%, also meeting expectations. The company achieved a NON-GAAP net profit of 362 million yuan, marking a turnaround from losses, exceeding consensus forecasts [1]. - Cost-saving measures contributed to the profit exceeding expectations, with R&D expenses at 840 million yuan, 7% lower than anticipated, and sales expenses at 1.17 billion yuan, 3% below expectations. Overall, total expenses were 4% lower than projected [1]. - The report highlights the upcoming performance of the "Three Kingdoms" anniversary season as a key focus area [1]. Financial Projections - Revenue projections for Bilibili are adjusted to 29.9 billion yuan for 2025, 32.4 billion yuan for 2026, and 34.6 billion yuan for 2027, reflecting year-over-year growth rates of 12%, 8%, and 7% respectively [7]. - The forecast for NON-GAAP net profit is updated to 2.01 billion yuan for 2025, 3.6 billion yuan for 2026, and 4.99 billion yuan for 2027, with significant year-over-year growth rates of 147.8%, 247.1%, and 62.3% respectively [7]. - The target price for Bilibili is set at $21.20, based on a 20x PE ratio for the 2026 NON-GAAP net profit, discounted back to 2025 [7]. Business Segments Performance - Mobile gaming revenue for Q1 2025 was 1.73 billion yuan, a 76% year-over-year increase, driven primarily by the core SLG product "Three Kingdoms: Strategy of the World" [7]. - Advertising revenue reached 2 billion yuan, a 20% year-over-year increase, supported by stable user growth, with DAU at 107 million, MAU at 368 million, and an average user engagement time of 108 minutes [7]. - Value-added services generated 2.8 billion yuan in revenue, an 11% year-over-year increase, driven by live streaming and other services [7].

Investment Rating - The report maintains a "Recommended" rating for Bilibili (BILI), expecting it to outperform the benchmark index by 10%-20% over the next six months [16]. Core Insights - Bilibili's Q1 2025 financial results showed revenue of 7 billion yuan, a year-over-year increase of 24%, aligning with Bloomberg consensus expectations. The gross profit reached 2.54 billion yuan, up 58% year-over-year, with a gross margin of 36.3%, also meeting expectations. The company achieved a non-GAAP net profit of 362 million yuan, marking a return to profitability and exceeding consensus forecasts [1]. - Cost-saving measures contributed to the better-than-expected profit, with R&D expenses at 840 million yuan, 7% lower than expected, and sales expenses at 1.17 billion yuan, 3% below expectations. Overall, total expenses were 4% lower than anticipated [1]. Financial Projections - Revenue projections for Bilibili are adjusted to 29.9 billion yuan for 2025, 32.4 billion yuan for 2026, and 34.6 billion yuan for 2027, reflecting year-over-year growth rates of 12%, 8%, and 7% respectively [7]. - The forecast for non-GAAP net profit is updated to 2.01 billion yuan for 2025, 3.6 billion yuan for 2026, and 4.99 billion yuan for 2027, with significant year-over-year growth rates of 147.8%, 247.1%, and 62.3% respectively [7]. Business Segment Performance - Mobile gaming revenue for Q1 2025 was 1.73 billion yuan, a 76% year-over-year increase, driven primarily by the core SLG product "Three Kingdoms: Strategy of the World" [7]. - Advertising revenue reached 2 billion yuan, a 20% year-over-year increase, supported by stable user growth, with daily active users (DAU) reaching 107 million, a 4% year-over-year increase [7]. - Value-added services generated 2.8 billion yuan in revenue, an 11% year-over-year increase, driven by live streaming and other services [7]. Valuation and Target Price - The target price for Bilibili is set at $21.20, based on a 20x PE ratio for the 2026 non-GAAP net profit, discounted back to 2025 [7].

Core Insights - Bilibili (BILI) reported strong results for 1Q25, with revenue largely in line with expectations and profit exceeding consensus estimates [1] - All key business segments of Bilibili outperformed industry growth, indicating a positive trajectory towards profitability [1] Financial Performance - Bilibili's revenue for 1Q25 was consistent with market expectations, while profits were ahead of consensus [1] - The performance across all business segments suggests robust operational metrics supporting the company's growth strategy [1] Market Position - Bilibili's ability to deliver results above industry growth rates reinforces its competitive position in the market [1] - The company's focus on enhancing portfolio performance and uncovering alpha opportunities is supported by a strong track record in investment research [1]

Core Viewpoint - The company reported strong financial performance in Q1 2025, with revenue and adjusted net profit exceeding market expectations, indicating robust growth across various business segments [1][2][3] Financial Performance - Q1 2025 revenue reached 7 billion yuan, slightly above Bloomberg consensus by 1%, with a year-on-year growth of 24% [1] - Adjusted net profit for Q1 2025 was 360 million yuan, surpassing Bloomberg consensus by 47%, marking a turnaround from losses, with a corresponding profit margin of 5.2% [1] - Operating cash flow for Q1 2025 was 1.3 billion yuan [1] User Engagement - Monthly Active Users (MAU) reached 368 million, a year-on-year increase of 8%, while Daily Active Users (DAU) reached 107 million, up 4% [1] - Average daily usage time per user was 108 minutes, an increase of 3 minutes year-on-year, with both MAU and user engagement time hitting historical highs [1] Gaming Business - Q1 2025 gaming revenue was 1.7 billion yuan, a significant year-on-year increase of 76%, driven by the game "Three Kingdoms: Strategy of the World" [2] - The company is focusing on long-term operations for "Three Kingdoms" and has several games awaiting approval, with new seasons and expansions planned [2] Advertising Business - Q1 2025 advertising revenue was 2 billion yuan, reflecting a year-on-year growth of 20%, with high-margin performance advertising revenue growing over 30% [2] - AI is increasingly contributing to advertising growth by optimizing user conversion and generating ads through AIGC, covering over 30% of performance ads [2] Value-Added Services - Q1 2025 revenue from value-added services was 2.8 billion yuan, showing an 11% year-on-year increase [2] - The number of premium members reached 23.5 million, a 7% year-on-year increase, with a paid rate of 6.4% [3] Cost Management - Q1 2025 gross margin was 36.3%, in line with expectations, achieving eleven consecutive quarters of sequential improvement [3] - Effective cost control was noted, with total expenses increasing by only 4% year-on-year, despite a 26% rise in sales and marketing expenses due to promotional activities [3] Profit Forecast - The company has revised its adjusted net profit forecasts for 2025-2027 to 2.049 billion, 2.947 billion, and 3.507 billion yuan respectively, maintaining a buy rating [3]