Group 1 - Bilibili (BILI) has recently reached a key level of support and overtook the 50-day moving average, indicating a short-term bullish trend [1] - Shares of BILI have increased by 8.5% over the past four weeks, reflecting positive momentum [1] - BILI is currently rated as a Zacks Rank 2 (Buy), suggesting potential for continued price appreciation [1] Group 2 - There have been no downward revisions in earnings estimates for BILI in the past two months, with one estimate increasing, which strengthens the bullish outlook [1] - The consensus earnings estimate for BILI has also seen an upward adjustment, further supporting the positive sentiment [1][2]

Financial Performance - Total net revenues for Q1 2024 were RMB5.66 billion (US$784.5 million), representing a 12% year-over-year increase[2] - Advertising revenues increased by 31% year-over-year to RMB1.67 billion (US$231.1 million)[2] - Value-added services (VAS) revenues grew by 17% year-over-year to RMB2.53 billion (US$350.3 million)[2] - Gross profit reached RMB1.61 billion (US$222.3 million), a 45% increase year-over-year, with a gross profit margin of 28.3%[3] - Total net revenues for the three months ended March 31, 2024, were RMB 5,664,600, a decrease of 10.8% compared to RMB 6,349,096 for the previous quarter[22] - Gross profit for the same period was RMB 1,605,360, representing a gross margin of approximately 28.3%[22] - The net loss attributable to Bilibili Inc.'s shareholders for the three months ended March 31, 2024, was RMB 748,545, compared to a net loss of RMB 1,296,484 in the previous quarter[22] - The company reported an adjusted net loss of RMB 455,882 for the three months ended March 31, 2024[29] User Engagement - Average daily active users (DAUs) increased by 9% year-over-year to 102.4 million, while monthly active users (MAUs) reached 341.5 million, up 8% year-over-year[4] Operating Expenses - Total operating expenses decreased by 2% year-over-year to RMB2.42 billion (US$335.7 million)[9] - Operating expenses totaled RMB 2,423,956 for the three months ended March 31, 2024, a decrease of 18.1% from RMB 2,964,652 in the previous quarter[22] - Share-based compensation expenses included in total operating expenses were RMB 264,586 for the three months ended March 31, 2024[24] Cash Flow and Assets - Operating cash flow was RMB637.7 million (US$88.3 million), compared to negative RMB630.0 million in the same period last year[3] - Cash and cash equivalents decreased to RMB 6,037,409 as of March 31, 2024, down from RMB 7,191,821 as of December 31, 2023[26] - Total current assets decreased to RMB 16,127,496 as of March 31, 2024, compared to RMB 18,727,039 as of December 31, 2023[26] - Net cash provided by operating activities for the three months ended March 31, 2024, was RMB 637,697, compared to net cash used of RMB 629,977 in the same period last year[27] Mobile Games - Mobile games revenues decreased by 13% year-over-year to RMB982.8 million (US$136.1 million)[7]

Financial Performance - Net revenue for the six months ended June 30, 2024, was RMB 11,791,744, representing a 13.7% increase from RMB 10,373,810 in the same period of 2023[5]. - Gross profit for the same period increased by 47.5% to RMB 3,438,561, up from RMB 2,331,466[5]. - The adjusted net loss for the six months ended June 30, 2024, was RMB 726,872, a significant reduction of 63.6% compared to RMB 1,994,852 in 2023[5]. - The company reported a net loss of RMB 1,372,780 for the six months ended June 30, 2024, compared to a net loss of RMB 2,177,777 in the same period of 2023, reflecting a 37.0% improvement[5]. - Adjusted operating loss for the six months ended June 30, 2024, was RMB 796,114, down from RMB 1,994,494 in 2023, indicating a positive trend in operational efficiency[9]. - Total net revenue for the first half of 2024 reached RMB 11.79 billion, representing a year-on-year growth of 14%[11]. - Gross profit increased by 47% year-on-year, with the gross margin rising from 22.5% in the same period last year to 29.2%[12]. - Adjusted operating loss and adjusted net loss narrowed significantly by 60% and 64% year-on-year, respectively[12]. - Operating loss narrowed to RMB 1.40 billion for the first half of 2024, a 47% improvement from RMB 2.65 billion in the same period of 2023[41]. - The total comprehensive loss for the first half of 2024 was RMB 1,354,605, down from RMB 1,957,835 in the first half of 2023, representing a 30.8% reduction[132]. User Engagement - Daily active users exceeded 102.3 million, while monthly active users averaged 338.6 million, reflecting year-on-year growth of 8% and 6%[12]. - Average daily usage time per active user increased to 102 minutes, up from 95 minutes in the same period last year[16]. - The number of paid members exceeded 22.3 million, reflecting a year-on-year growth of 9%[18]. - Daily average video views increased by 20% year-on-year to over 4.9 billion, showcasing robust content engagement[13]. Revenue Streams - Revenue from value-added services grew by 14% year-on-year to RMB 5.09 billion, with a focus on enhancing live streaming content[18]. - Advertising revenue reached RMB 3.71 billion, marking a 30% year-on-year increase, driven by effective advertising strategies[20]. - Advertising revenue for the first half of 2024 was RMB 3.71 billion, a 30% increase from RMB 2.84 billion in the same period of 2023[31]. - Value-added services revenue for the first half of 2024 was RMB 5.09 billion, a 14% increase from RMB 4.46 billion in the same period of 2023[30]. - Mobile game revenue for the first half of the year totaled RMB 1.99 billion, a decrease of 2% year-on-year[22]. Assets and Liabilities - Total assets decreased by 5.6% from RMB 33,159,067 as of December 31, 2023, to RMB 31,318,493 as of June 30, 2024[5]. - Total liabilities also decreased by 5.4% from RMB 18,754,800 to RMB 17,736,790 during the same period[5]. - The total equity attributable to shareholders decreased by 5.7% from RMB 14,404,267 to RMB 13,581,703[5]. - Cash and cash equivalents as of June 30, 2024, were RMB 3,732,504, down from RMB 7,191,821 as of December 31, 2023[125]. - The company’s total cash and cash equivalents as of June 30, 2024, were not disclosed but are critical for assessing liquidity and operational flexibility[197]. Corporate Governance - The company has adopted a corporate governance code and has complied with all applicable provisions during the reporting period, except for the separation of the roles of Chairman and CEO, which are held by the same individual, Chen Rui[67]. - The Audit Committee, consisting of three independent directors, has reviewed the company's unaudited interim results for the six months ended June 30, 2024[73]. - The company has established a Compensation Committee, along with the Audit and Nomination Committees, to ensure effective governance practices[80]. - The company has committed to maintaining effective and ongoing communication with shareholders, particularly regarding compliance with listing rules[81]. Future Outlook - The management remains optimistic about future growth prospects, emphasizing ongoing investments in new products and technology development[5]. - Future outlook includes potential market expansion and new product development strategies, although specific figures were not provided in the report[197].

Industry Overview - The Communication Services sector has shown significant growth in 2024, with the Communication Services Select Sector SPDR (XLC) increasing by 20.8% year to date, ranking behind only Financials and Utilities [1] - This sector includes companies involved in wired, wireless, satellite, cable, Internet media services, and broadcasting, characterized by strong fundamentals [1] - Companies in this sector tend to withstand market volatility by cutting costs and maintaining robust balance sheets, especially with anticipated Fed rate cuts starting in September [1] Technological Impact - Communication services companies are a subset of the tech sector, continuously investing in new technologies and innovations, which presents opportunities for price appreciation [2] - The rise of generative artificial intelligence (AI) has driven growth in this sector, with several companies positioned to benefit from its evolution [2] - While the potential for market upside exists, there are concerns about whether the current hype around generative AI may lead to a bubble [2] Stock Recommendations - Bilibili Inc. (BILI) is highlighted for its online entertainment services in China, with an expected earnings growth rate of 100% for the current year and a Zacks Rank of 2 [3] - SES S.A. (SGBAF), engaged in satellite-based data transmission, has an expected earnings growth rate of 12.7% and a Zacks Rank of 2 [4] - Tencent Holdings Limited (TCEHY), a tech company providing various online services, has an expected earnings growth rate of 32% and a Zacks Rank of 2 [4]

Investment Rating - The report assigns a "Buy" rating for Bilibili with a target price of $21.00 USD / 163.77 HKD, indicating a potential upside of 36.61% / 35.01% from the current stock price [2][6][3]. Core Insights - Bilibili's Q2 revenue reached 6.13 billion RMB, a year-on-year increase of 15.5%, slightly above market expectations. The gross margin improved to 29.9%, up 6.8 percentage points, primarily driven by the growth in high-margin advertising and gaming businesses [2][4]. - The company expects to achieve Non-GAAP operating profit in Q3, with revenue projected to grow by 22.4% year-on-year to 7.1 billion RMB, and gross margin expected to increase to 35% [2][4]. - The advertising business is benefiting from increased demand in gaming and e-commerce, with annual advertising revenue expected to grow by 24% [2][4]. - User metrics show steady growth, with DAU increasing by 5.2% to 100 million and MAU growing by 3.7% to 340 million [2][4]. - The gaming segment is projected to generate significant revenue, with expectations of 2.5 billion RMB in 2024 and 5 billion RMB in 2025 from the game "Three Kingdoms" [2][4]. Financial Summary - Total revenue for the fiscal year ending December 31 is forecasted to grow from 22.53 billion RMB in 2023 to 31.25 billion RMB by 2026, reflecting a compound annual growth rate (CAGR) of 17.8% [4][5]. - The net profit is expected to improve from a loss of 1.3 billion RMB in 2024 to a profit of 1.58 billion RMB in 2026, with net profit margins turning positive by 2025 [4][5]. - The gross margin is projected to increase significantly from 24.2% in 2023 to 34.6% by 2026, indicating improved operational efficiency [4][5]. Market Position - Bilibili's market capitalization stands at $6.365 billion USD, with major shareholders including Chen Rui at 12% [3][4]. - The stock has a 52-week high of $18.19 and a low of $8.80, indicating volatility in its market performance [3][4].

| --- | --- | --- | |-------------------------------------------------------------------------------------|-------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | | 24Q2 | | 点评：三谋助力游戏业务重回正增长， 24Q3 有望实现 NON-GAAP OP 盈利 | | 投资评级：买入 ( | 维持） | 主要观点： | | [Table_Rank] 报告日期： 2024-08-28 | | ⚫ 事件： | | [T ...

游戏收入超预期增长，盈利可期 ——哔哩哔哩（9626.HK）24Q2 点评 核心观点 ⚫ 总收入：24Q2 达 61.27 亿（yoy+16%，qoq+8.17%），广告和增值业务驱动公司 主要增长。24Q2 毛利率达 29.9%（yoy+6.78pp，qoq+1.58pp）。24Q2 销售费用 为 10.4 亿（yoy+12.79%，qoq+11.71%），管理费用为 4.9 亿（yoy-9.57%，qoq8.22%），研发费用为 8.9 亿（yoy-14.57%，qoq-7.30%）。24Q2Non-gaap 归母 净利润达-2.7 亿（yoy-71.79%，qoq-38.26%），实现持续减亏。24Q2Non-gaap 营业利润为-2.8 亿，我们预期 24Q3non-gaap 营业利润达 2 亿，首次转正。 ⚫ 广告: 24Q2 达 20.4 亿（yoy+29.54%,qoq+22.11%）。广告收入占整体收入比例由 去年同期 30%提升至 33%，有效带动公司毛利润的提升。供给端： DAU 稳定增长 叠加商业化产品的持续整合，促使变现效率不断提高。需求端：随着 B 站用户成 熟，消费能力快速释放。电 ...

Investment Rating - The investment rating for the company is maintained at "Buy" [3][2]. Core Insights - The company reported a revenue of 6.13 billion yuan for Q2 2024, exceeding Bloomberg's consensus estimate by 0.6% [1]. - Gross profit reached 1.83 billion yuan, surpassing Bloomberg's consensus estimate by 2.9%, with a gross margin of 29.9%, an increase of 6.8 percentage points year-over-year [1]. - Adjusted net loss narrowed significantly to 270 million yuan, a year-over-year reduction of 72% [1]. User and Creator Metrics - Daily Active Users (DAU) exceeded 102 million, up 6% year-over-year, while Monthly Active Users (MAU) reached 336 million [1]. - The average daily usage time per user was 99 minutes [1]. - The number of creators earning income through the platform increased by 34% year-over-year, with those earning through video and live streaming sales rising by 76% [1]. Business Segment Performance - **Gaming**: Revenue for the gaming segment was 1.01 billion yuan, exceeding Bloomberg's estimate by 5.5%, and grew 13% year-over-year, driven by the exclusive strategy game "Three Kingdoms: Strategy" [1][2]. - **Advertising**: Advertising revenue reached 2.04 billion yuan, surpassing Bloomberg's estimate by 2.0%, with a year-over-year increase of 30%, attributed to improved advertising efficiency and product optimization [1]. - **VAS (Value-Added Services)**: Revenue was 2.57 billion yuan, below Bloomberg's estimate by 3.1%, but still grew 11% year-over-year, supported by an increase in paid users for premium services [1]. - **IP and Derivatives**: Revenue was 520 million yuan, slightly below Bloomberg's estimate by 5.4%, with a year-over-year decline of 4% [1]. Cost Structure and Profitability - Operating costs were 4.29 billion yuan, with revenue-sharing costs accounting for 2.49 billion yuan [1]. - The company achieved a gross margin of 29.9%, an increase of 6.8 percentage points year-over-year [1]. - General and administrative expenses decreased by 10%, while R&D expenses fell by 15% year-over-year [1]. - Operating loss was 590 million yuan, a year-over-year reduction of 54% [1].

交银国际研究 公司更新 | --- | --- | --- | |------------|-------------|----------| | 收盘价 | 目标价 | 潜在涨幅 | | 美元 12.96 | 美元 19.00↓ | +46.6% | 哔哩哔哩 (BILI US) 新游拉动游戏收入加速增长，3 季度运营层面有望实现盈利 2 季度亏损收窄好于预期。哔哩哔哩 2024 年 2 季度收入为 61 亿元人民币 （下同），同/环比增16%/8%，基本符合预期。调整后净亏损为2.7亿元， 同/环比收窄 72%/38%，好于我们预期的 3.3 亿元亏损，主要受益于收入结 构改善带动毛利率提升（同/环比+6.8/1.6 个百分点）以及运营费用率优化 （同环比收窄 7.8/3.3 个百分点）。 广告收入维持快于行业增长。2 季度广告收入同比增 30%，仍受益于：1） 流量增长（总时长/日均视频播放量同比+11%/18%）；2）基建及垂直行业 解决方案优化带动广告主数量增长（上半年，效果 KA 广告主数量同比 +50%）及投放效率提升，电商/数码家电投放增量领先。3）交易带动广告 投放，2 季度，观看交易内容的 ...

Investment Rating - The report maintains a "Buy" rating for Bilibili [2][3] Core Views - Bilibili's revenue shows steady growth with a significant improvement in gross margin, driven by an increase in high-margin advertising business [1] - The company aims to achieve non-GAAP breakeven in Q3 2024 and continue enhancing profitability thereafter [1] - User engagement remains strong, with a daily active user (DAU) growth of 6% year-on-year, reaching 102 million [1] - Advertising revenue is expected to grow, with a 29.5% year-on-year increase in Q2 2024, supported by improved advertising products and efficiency [1] - The gaming segment remains stable, with the new game "Three Strategies" performing exceptionally well, achieving over 100 million in revenue within its first week [1] Financial Summary - For 2024, Bilibili's projected revenue is 25.998 billion, with a year-on-year growth of 15.4% [5][10] - Non-GAAP net profit is expected to improve from a loss of 6.692 billion in 2022 to a loss of 232 million in 2024, with a significant turnaround anticipated in 2025 [5][10] - The gross margin is projected to increase from 24.2% in 2023 to 32.2% in 2024, reflecting improved operational efficiency [10] - The company expects to maintain a user retention rate of 80% for its formal membership, indicating strong user loyalty [1]