Investment Rating - The report maintains a "Buy" rating for Bilibili (BILI US) with a target price of $25.00, indicating a potential upside of 23.1% from the current price of $20.31 [1][9]. Core Insights - The report slightly raises the revenue forecast for Q3 2024 by 1% to RMB 7.3 billion, representing a year-on-year growth of 26%, primarily driven by the performance of the game "Three Miao" [1]. - The expected gross margin is projected to increase by 9 and 4 percentage points year-on-year and quarter-on-quarter, respectively, to 34%, due to operational leverage and an increase in the proportion of game and advertising revenues [1]. - The game "Three Miao" is expected to generate over RMB 1.3 billion in revenue for Q3, leading to an upward adjustment of the game revenue forecast to RMB 1.9 billion for Q3 and RMB 5.6 billion for 2024, with year-on-year growth rates of 92% and 40%, respectively [1]. - Advertising and VAS revenue are expected to grow by 25% and 10% year-on-year, respectively, supported by improved advertising infrastructure and product iterations [1]. - The report anticipates a long-term profit margin normalization of 10-15% due to the stable performance of "Three Miao" and the launch of new games [1]. Financial Summary - Revenue projections for Bilibili are as follows: RMB 22.5 billion in 2023, RMB 26.9 billion in 2024 (19.2% growth), RMB 29.9 billion in 2025 (11.3% growth), and RMB 31.8 billion in 2026 (6.6% growth) [2][10]. - The net profit forecast shows a significant improvement, with expected losses of RMB 3.4 billion in 2023, narrowing to RMB 119 million in 2024, and turning profitable with RMB 1.8 billion in 2025 and RMB 2.8 billion in 2026 [2][10]. - The adjusted net profit is projected to be RMB 283 million in 2024, with a corresponding adjusted net profit margin of 4% [6][10]. Market Performance - Bilibili's stock has shown a significant range over the past 52 weeks, with a high of $29.66 and a low of $8.94, reflecting a market capitalization of approximately $6.55 billion [3][10]. - The stock's year-to-date performance indicates a strong recovery, with a notable increase compared to the MSCI China Index [3][9].

Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Is Bilibili (BILI) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out. Bilibili is one of 621 companies in the Computer and Technology group. The Computer and Technology group currently sits at #4 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the ind ...

Core Viewpoint - The recent rally in the Chinese stock market, driven by government stimulus, appears to have peaked, but there are still positive gains compared to last week's close [1][2]. Group 1: Market Performance - The Chinese stock market saw significant gains across various sectors, with notable increases in stocks such as Bilibili (up 18%), Tencent Music Entertainment Group (up 10%), and Up Fintech Holding (up over 100%) [1]. - Despite the rally, a correction occurred as profit-takers and short-term speculators sold off stocks that had recently surged [3]. Group 2: Government Stimulus - The rally originated from the Chinese government's announcement of a new economic stimulus package aimed at revitalizing the economy, particularly in sectors like real estate and financial services [2]. - The effectiveness of the stimulus package remains uncertain, as it has yet to be implemented and may not provide an immediate solution to the economic challenges [2]. Group 3: Future Outlook - There is an expectation that further price increases may occur as investors assess the potential benefits of the government's measures, despite the recent market correction [4]. - The implementation of the announced measures will take time, and investors are likely to continue seeking opportunities in stocks that could benefit from the stimulus [4].

Group 1 - Chinese tech stocks, including Tencent, JD.com, and Bilibili, have seen significant rallies, with increases of 4%, 3%, and 9.3% respectively [1] - The rally is attributed to recent stimulus measures from the Chinese government, including interest rate cuts and fiscal support for households [2][3] - Chinese stocks remain undervalued compared to U.S. stocks, with the CSI 300 index still 30% below its 2021 highs [3] Group 2 - Despite recent growth, Tencent, JD, and Bilibili are still 44%, 63%, and 85% below their all-time highs, indicating potential for recovery [4] - The Chinese government has allocated $114 billion for stock buybacks and to encourage local insurance companies to invest in Chinese equities [3] - There is a divide among investors regarding the sustainability of the rally, with some optimistic about short-term gains while others are cautious due to structural issues in the Chinese economy [6][7]

Group 1 - Bilibili Inc (BILI) shares increased by 7.86% on October 2, reaching an intraday high of $31.77 before closing at $28.83, which is 9.25% below its 52-week high and 227.61% above its 52-week low [1] - The trading volume for Bilibili was 21,123,874 shares, which is 318.8% of the average daily volume of 6,627,065 shares [1] Group 2 - The average one-year price target for Bilibili Inc, based on 31 analysts, is $18.32, indicating a potential downside of 36.45% from the current price of $28.83 [2] - The consensus recommendation from 37 brokerage firms gives Bilibili Inc an average rating of 2.0, suggesting an "Outperform" status [2] - GuruFocus estimates the fair value (GF Value) for Bilibili Inc in one year to be $23.94, indicating a downside of 16.96% from the current price [2]

Core Viewpoint - Bilibili (BILI) is identified as a strong momentum stock, currently holding a Momentum Style Score of A and a Zacks Rank of 2 (Buy), indicating potential for significant short-term gains [1][2][6]. Momentum Characteristics - BILI shares have increased by 44.15% over the past week, significantly outperforming the Zacks Internet - Services industry, which rose by only 1.75% during the same period [3]. - Over the past quarter, BILI shares have risen by 42.8%, and over the last year, they have increased by 66.45%, while the S&P 500 has only moved 4.91% and 35.91%, respectively [4]. Trading Volume - The average 20-day trading volume for BILI is 6,174,247 shares, indicating strong interest and a bullish sentiment in the stock [4]. Earnings Estimates - In the last two months, two earnings estimates for BILI have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from -$0.07 to $0.02 [5]. - For the next fiscal year, two estimates have also moved upwards with no downward revisions, suggesting positive earnings momentum [5]. Conclusion - Given the strong performance metrics and positive earnings outlook, BILI is recommended as a stock to consider for short-term investment opportunities [6][7].

Exhibit 99.1 Aggregate number of RSUs granted: 2,946,424 Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. Bilibili Inc. (A company controlled through weighted voting rights and incorporated in ...

Core Viewpoint - China's central bank has announced a 50 basis points cut in banks' reserve requirement ratio (RRR), leading to a significant boost in the stocks of U.S.-listed Chinese companies across various sectors [1] Group 1: Stock Performance - Lufax Holding Ltd (LU) shares increased by 23.48% [1] - Bilibili Inc. (BILI) shares surged by 32.47%, likely due to expectations of China issuing up to $284 billion in sovereign debt as part of a stimulus [1] - Kanzhun Limited (BZ) shares rose by 26.63% [1] - TAL Education Group (TAL) stock climbed by 27.23%, benefiting from aggressive monetary stimulus from the People's Bank of China (PBoC) [1] - XPeng Inc. (XPEV) stock gained 32.50% last week, also influenced by the anticipated issuance of $284 billion in sovereign debt [1] - MP Materials Corp. (MP) stock increased by 32.40% after Baird raised its price forecast from $20 to $25 [1] - Rocket Lab USA, Inc. (RKLB) stock rose by 30.92% following several analysts raising their price forecasts [1]

Core Viewpoint - Bilibili (BILI) shows a significantly improving earnings outlook, making it a solid investment choice as analysts continue to raise earnings estimates for the company [1][2]. Current-Quarter Estimate Revisions - The earnings estimate for the current quarter is $0.09 per share, reflecting a year-over-year increase of +131.03% [3]. - The Zacks Consensus Estimate for Bilibili has risen by 50% over the last 30 days, with one estimate increasing and no negative revisions [3]. Current-Year Estimate Revisions - For the full year, Bilibili is expected to earn $0.02 per share, indicating a year-over-year change of +101.71% [4]. - The consensus estimate for the current year has increased by 5.06%, with one estimate moving higher and no negative revisions [4]. Favorable Zacks Rank - Bilibili currently holds a Zacks Rank 2 (Buy), attributed to positive estimate revisions, which historically lead to significant outperformance compared to the S&P 500 [5]. - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have shown a strong track record of outperforming the market [5]. Bottom Line - Bilibili's stock has increased by 28.8% over the past four weeks due to strong estimate revisions, suggesting potential for further upside, making it a candidate for portfolio addition [6].

Investment Rating - Maintain "Overweight" rating [1] Core Views - Bilibili's self-published SLG mobile game "Three Kingdoms: Strategic Conquest" (referred to as "Three Kingdoms") has shown strong performance, reaching No 2 on the iOS bestseller list shortly after its S3 season launch on September 21 [1] - The game is expected to become a long-term revenue driver, with iOS revenue estimated at $825 million as of September 22 [1] - Bilibili's 2Q24 total revenue reached RMB 6 13 billion (YoY +16%), with game revenue contributing RMB 1 01 billion (YoY +13%) [1] - Advertising revenue grew 30% YoY to RMB 2 04 billion in 2Q24, driven by e-commerce and digital home appliances sectors [1] - The company is expected to achieve operating profitability in 3Q24, with adjusted operating profit forecasted at RMB 180-200 million [1] Business Performance Game Business - "Three Kingdoms" set a record as Bilibili's fastest game to reach RMB 1 billion in revenue [1] - The game maintained its position as the top-grossing SLG game in China's iOS market since its public launch on June 13 [1] - Bilibili ranked 8th in China's mobile game publisher global revenue ranking in August 2024, up 4 places from the previous month [1] - Future pipeline includes global version of "Jujutsu Kaisen Phantom Parade" with a target of 10 million pre-registrations, scheduled for December 5, 2024 [1] Financial Performance - 2Q24 gross margin improved by 6 8 percentage points to 29 9% [1] - Adjusted operating loss narrowed by 69% YoY to RMB 284 million [1] - Adjusted net loss narrowed by 72% YoY to RMB 271 million [1] - Deferred revenue increased by RMB 738 million from the end of March to June [1] Future Outlook - 3Q24 game revenue is expected to achieve high double-digit growth [1] - Advertising revenue is projected to maintain 25-30% growth in 3Q24 [1] - VAS business is forecasted to grow approximately 10% in 3Q24 [1] - The company is expected to achieve 15-20% operating margin in the medium term [1] Valuation and Forecast - Revenue forecasts for 2024-2026 are maintained at RMB 26 7/29 7/31 9 billion [1] - Net profit forecasts for 2024-2026 are revised to -1 26/0 27/1 66 billion RMB (vs previous -1 48/0 18/1 55 billion) [1]