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]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of USD 25.00, indicating a potential upside of 34.5% from the current price of USD 18.59 [5][15]. Core Insights - The company achieved its first operational profit in Q3 2024, with revenues of RMB 7.3 billion, reflecting a year-on-year growth of 26% and a quarter-on-quarter growth of 19% [1][2]. - The adjusted operational profit reached RMB 272 million, surpassing market expectations, driven by improved revenue structure and cost management [1][3]. - Game revenue surged by 84% year-on-year, significantly contributing to overall revenue growth, while advertising revenue grew by 28% [2][3]. Financial Overview - Total revenue projections for 2024E are RMB 26.7 billion, with a year-on-year growth of 18.6% [4]. - The company is expected to achieve a net profit of RMB 1.9 billion in 2025, reflecting a significant turnaround from previous losses [4]. - The gross margin is anticipated to improve to 36% in Q4 2024, supported by high-margin game and advertising revenues [2][13]. User Engagement Metrics - Monthly active users (MAU) reached 30 million, with a stable user engagement reflected in daily average usage time [11]. - The company reported a 10% year-on-year increase in total user hours, indicating strong content consumption growth [10]. Market Position and Valuation - The company’s market capitalization stands at approximately USD 6.17 billion, with a year-to-date stock price increase of 52.75% [6]. - The report suggests that the stock price has limited downside potential, with a reasonable target price range of USD 20-28 based on normalized profit margins [3][14].

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 ...

Investment Rating - The report maintains a "Buy" rating for the company [2][6]. Core Insights - The company achieved a revenue of 7.306 billion yuan in Q3 2024, representing a year-on-year growth of 26%. The net profit attributable to shareholders was -0.08 billion yuan, a 94% year-on-year reduction, and the adjusted net profit was 0.236 billion yuan, marking the first time the company turned profitable under non-GAAP standards [1][2]. - The gross margin for Q3 2024 was 34.9%, an increase of nearly 5 percentage points year-on-year, with nine consecutive quarters of sequential growth [1]. - The new game "Three Kingdoms: Strategy Determination" performed well, ranking second in the App Store's game sales chart after its launch, contributing positively to the company's gaming business [1][2]. - Daily Active Users (DAU) and Monthly Active Users (MAU) reached historical highs of 107 million and 348 million, respectively, with average daily usage time also hitting a record of 106 minutes [2]. - Advertising revenue for Q3 2024 was 2.094 billion yuan, a year-on-year increase of 28%, driven by product optimization and efficiency improvements [2]. Financial Projections - The company is expected to see revenue growth rates of 19.3%, 14.9%, and 8.4% for the years 2024, 2025, and 2026, respectively, reaching revenues of 26.876 billion yuan, 30.886 billion yuan, and 33.494 billion yuan [2][6]. - The forecasted Non-GAAP net profit for 2024 is projected to be -0.068 billion yuan, turning positive in 2025 with 0.531 billion yuan and further increasing to 1.392 billion yuan in 2026 [6][7].

Investment Rating - The report maintains a "BUY" rating for Bilibili with a target price of US$22.00, reflecting an upside potential of 18.3% from the current price of US$18.59 [3][7]. Core Insights - Bilibili reported a total revenue of RMB7.31 billion for 3Q24, representing a 26% year-over-year increase, which exceeded both the report's and Bloomberg's consensus estimates [1]. - The company achieved quarterly breakeven with an adjusted net income of RMB236 million, a significant improvement from an adjusted net loss of RMB878 million in 3Q23 [1]. - The strong performance is attributed to the success of the new game title SanMou and effective cost optimization initiatives [1]. - For 4Q24, total revenue is expected to grow by 21% year-over-year, with adjusted net margin projected to expand to 5.3% [1]. Revenue Performance - Mobile games revenue surged by 84% year-over-year to RMB1.82 billion in 3Q24, driven primarily by SanMou's performance [1]. - Advertising revenue increased by 28% year-over-year to RMB2.09 billion, supported by approximately 50% growth in performance-based ads [1]. - Value-Added Services (VAS) revenue rose by 9% year-over-year to RMB2.82 billion, mainly due to growth in premium membership and Fan Charging revenue [1]. Future Outlook - The report forecasts continued revenue growth momentum into 4Q24, with mobile games, advertising, and VAS revenues expected to grow by 78%, 24%, and 5% year-over-year, respectively [1]. - SanMou's upcoming Season 4 launch is anticipated to further boost mobile game revenue in 4Q24 [1]. - Management expects advertising revenue to maintain faster-than-industry growth, supported by increasing ad inventories and improving monetization efficiency [1]. Margin Expansion - The overall gross profit margin expanded by 9.9 percentage points year-over-year to 34.9% in 3Q24, attributed to cost optimization and strong mobile game performance [1]. - Adjusted net margin improved by 18.4 percentage points year-over-year to 3.2% in 3Q24, with expectations for further expansion to 5.3% in 4Q24 [1]. Financial Forecasts - The report updates the revenue forecasts for FY24-26, increasing them by 1-5% due to robust game performance [1]. - For FY24E, total revenue is projected at RMB26.78 billion, with a gross margin of 32.8% and an adjusted net profit of RMB68 million [2][4].

Financial Data and Key Metrics Changes - No specific financial data or key metrics changes mentioned in the provided content [1][2][3][4][5] Business Line Data and Key Metrics Changes - No specific business line data or key metrics changes mentioned in the provided content [1][2][3][4][5] Market Data and Key Metrics Changes - No specific market data or key metrics changes mentioned in the provided content [1][2][3][4][5] Company Strategy and Development Direction and Industry Competition - No specific company strategy, development direction, or industry competition mentioned in the provided content [1][2][3][4][5] Management Commentary on Operating Environment and Future Outlook - The company will discuss its business outlook and make forward-looking statements during the call, but no specific commentary on the operating environment or future outlook is provided in the content [3] Other Important Information - The non-GAAP financial measures provided are for comparison purposes only, with definitions and reconciliation tables available in the news release [4] - The conference is being recorded, and an investor presentation and webcast replay will be available on the Bilibili IR website [4] Summary of Q&A Session - No Q&A session content provided in the documents [1][2][3][4][5]

Investor Presentation 1 November 2024 ilfdilli ( *- *)つロ干杯~ Q Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "confident," "potential," "continue," or other similar expressions. Among other ...