Core Insights - Bilibili (referred to as "B站") held an online event on November 15 to announce 40 new domestic animation projects for 2025-2026 [1] New Works - Bilibili will collaborate with Shenman Culture for the first time to adapt the popular web novel "I Clean Garbage in the Wasteland" into an animated series [1] - Classic IPs such as "The Legend of Sword and Fairy 4" and "Difficult to Please" have revealed new trailers [1] - The TV animation "The Legend of Luo Xiaohei" will launch a new chapter titled "Preschool Chapter" after a four-year hiatus [1] IP Sequels - The new season of the annual series "A Mortal's Journey to Immortality" is set to air in the first half of 2026 [1] - A feature film titled "The Mystery of the Vast Sea" and a spin-off "The Story of Xuan Gu" are also in production under the same IP [1] - The ongoing annual series "The Shepherd's Record" will introduce several new characters [1] - The third season of "Time Agent" is scheduled to premiere in October 2026 [1] - The highly popular animation "Chinese Folktales 2" is set to be released on January 1, 2026 [1]

Core Viewpoint - Foreign capital continues to show optimism towards Chinese assets, with several major financial institutions raising target prices for key Chinese companies, indicating a positive outlook for the Chinese stock market [1][7]. Group 1: Target Price Adjustments - Citigroup raised the target price for Tencent Holdings from 735 HKD to 751 HKD per share, maintaining a "Buy" rating [3]. - Morgan Stanley increased the target price for Bilibili's US stock from 23 USD to 25 USD, while Citigroup raised it to 27 USD, and Lyon raised it to 29.1 USD [4]. - Morgan Stanley significantly raised the target price for XPeng Motors' Hong Kong stock to 195 HKD, and UBS raised the target price for China Hongqiao to 38.60 HKD [1][5]. Group 2: Company Performance Insights - Tencent's third-quarter revenue grew by 15% year-on-year to 192.9 billion CNY, with a Non-IFRS net profit of 70.6 billion CNY, up 18% year-on-year [3]. - Bilibili's third-quarter advertising revenue and adjusted operating profit exceeded expectations, prompting analysts to raise profit forecasts for 2025 and 2026 [4]. - XPeng Motors is expected to see growth driven by its recent AI initiatives, including Robotaxi and humanoid robots, although significant revenue contributions are not anticipated until late 2026 [5]. Group 3: Positive Sentiment Towards Chinese Market - UBS stated that the valuation and capital flow conditions of the Chinese stock market are favorable, maintaining an "overweight" rating on Chinese stocks [8]. - Global asset management executives expressed increasing confidence in the long-term investment value of the Chinese market, citing improvements in macroeconomic conditions and policy environments [9]. - The consensus among foreign investment executives is that investing in China represents investing in the future, with a focus on the opportunities presented by China's 14th Five-Year Plan [9].

Core Insights - Bilibili (referred to as "B站") held its 2025-2026 National Animation Works Release Conference, announcing 40 new domestic animation projects [1] Group 1: New Projects - Bilibili collaborated with Shenman Culture for the animation adaptation of the popular web novel "I Clean Garbage in the Wasteland" [1] - Classic IPs such as "The Legend of Sword and Fairy 4" and "Difficult to Please" revealed new trailers [1] - The TV animation "The Legend of Luo Xiaohei" is set to launch a new chapter titled "Preschool Chapter" after a four-year hiatus [1] Group 2: IP Sequels - The new season of the annual series "A Mortal's Journey to Immortality" is scheduled to air in the first half of 2026 [1] - "Time Agent" Season 3 is set to premiere in October 2026 [1] - "Chinese Folktales 2" is confirmed to be released on January 1, 2026 [1] Group 3: Historical Context and Performance - This marks the eighth National Animation Works Release Conference for Bilibili, with over 3,000 domestic works launched since 2018 [1] - In the past year, users spent nearly 970 million hours watching domestic content on Bilibili, with a 104% year-on-year increase in viewing time for domestic content in Q3 [1] - The overall user base of Bilibili reached 330 million, indicating that domestic animation has become a significant viewing choice for the younger demographic [1]

Core Insights - Bilibili (referred to as "B站") held its 2025-2026 National Original Animation Works Release Conference, announcing 40 new domestic animation projects [1] Group 1: New Projects - Bilibili is collaborating with Shenman Culture for the animation adaptation of the popular web novel "I Clean Garbage in the Wasteland" [1] - Classic IP works such as "The Legend of Sword and Fairy 4" and "Difficult to Please" have revealed new trailers [1] - The TV animation "The Legend of Luo Xiaohei" is launching a new chapter titled "Preschool Chapter" after a four-year hiatus [1] Group 2: IP Sequels - The new season of the annual series "A Mortal's Journey to Immortality" is set to air in the first half of 2026 [1] - The third season of "Time Agent" will officially launch in October 2026 [1] - "Chinese Folktales 2" is scheduled for release on January 1, 2026 [1] Group 3: Historical Context and Performance - This is Bilibili's eighth National Original Animation Works Release Conference, with over 3,000 domestic works launched since 2018 [1] - In the past year, users have watched nearly 970 million hours of domestic content, with a 104% year-on-year increase in playback time for domestic content in Q3 [1] - Bilibili's overall user base has reached 330 million, indicating that domestic animation has become a significant viewing choice for the younger demographic [1]

Core Insights - The report highlights steady user growth, increasing engagement, and a continuous improvement in gross margin over 13 consecutive quarters [1] Group 1: Financial Performance - Bilibili's revenue for Q3 2025 reached 7.69 billion yuan, a year-on-year increase of 5.2% [1] - Gross margin was 36.7%, up 1.8 percentage points year-on-year and 0.2 percentage points quarter-on-quarter [1] - Operating profit was 350 million yuan, with an operating margin of 4.6%, reflecting a year-on-year increase of 5.5% [1] - Adjusted net profit for Q3 was 790 million yuan, a significant year-on-year increase of 233.3%, with an adjusted net margin of 10.2%, up 7.0 percentage points year-on-year [1] Group 2: User Metrics - Bilibili's Daily Active Users (DAU) reached 117 million, a year-on-year increase of 9% [2] - Monthly Active Users (MAU) reached 376 million, a year-on-year increase of 8% [2] - The average daily user engagement time was 112 minutes, up 6% year-on-year [2] - The number of monthly paying users reached 35 million, a year-on-year increase of 17% [2] - The average age of active users is 26 years, while the average age of new users is 22 years [2] Group 3: Revenue Breakdown - Revenue from value-added services was 3.02 billion yuan, a year-on-year increase of 7.1%, driven by growth in paid memberships and other services [2] - Advertising revenue reached 2.57 billion yuan, a year-on-year increase of 22.7%, attributed to improved ad supply and effectiveness [2] - Mobile game revenue was 1.51 billion yuan, a year-on-year decrease of 17.1%, impacted by a high base from the previous year [2] - Revenue from IP derivatives and other sources was 580 million yuan, a year-on-year increase of 3% [2]

Core Viewpoint - The company reported Q3 2025 earnings with revenue of 7.685 billion yuan, a year-on-year increase of 5.2%, which is in line with the consensus forecast of 7.661 billion yuan. Adjusted operating profit reached 688 million yuan, exceeding the consensus estimate of 650 million yuan, driven by increased traffic and improvements in advertising infrastructure [1][2]. Group 1: Revenue and Profit Performance - Revenue for Q3 2025 was 7.685 billion yuan, reflecting a year-on-year growth of 5.2%, aligning with the consensus forecast [1]. - Adjusted operating profit was 688 million yuan, surpassing the expected 650 million yuan, attributed to a 23% year-on-year increase in advertising revenue, which outperformed the expected 20% growth [1][2]. - The company’s game revenue for Q3 2025 was 1.51 billion yuan, down 17% year-on-year, which was in line with the forecast of 1.54 billion yuan, primarily due to a high base effect from last year [2]. Group 2: User Engagement and Advertising Growth - Daily Active Users (DAU) reached 117 million, a year-on-year increase of 9%, with average daily usage time growing to 112 minutes, marking a 6-minute increase from the previous year [1]. - Advertising revenue accelerated to 2.57 billion yuan in Q3 2025, a year-on-year increase of 23%, with the number of advertisers growing by 16% [1][2]. Group 3: Cost Control and Profitability - The gross margin for Q3 2025 was 36.7%, up 1.8 percentage points year-on-year, driven by high growth in gaming and advertising businesses [2]. - The sales expense ratio decreased to 13.7%, down 2.8 percentage points year-on-year, which was better than the expected 14.6%, contributing to the higher operating profit [2]. Group 4: Future Outlook and Valuation - The company has slightly raised its revenue forecasts for 2025-2027 to 30.14 billion, 32.81 billion, and 35.17 billion yuan, respectively [3]. - Adjusted net profit estimates for 2025-2027 have been increased to 2.45 billion, 3.46 billion, and 4.45 billion yuan, respectively, reflecting a significant upward adjustment [3]. - The target market capitalization is set at 119.9 billion yuan, with a target price of 40.1/312.1 USD/HKD, maintaining a "buy" rating [3].

Core Insights - The company reported a better-than-expected performance in Q3 2025, with revenue of 7.69 billion yuan, a 5% year-on-year increase, and Non-GAAP net profit of 787 million yuan, exceeding expectations due to strong advertising revenue growth and improved gross margin [1][2] Performance Review - Q3 2025 revenue reached 7.69 billion yuan, surpassing the forecast of 7.61 billion yuan - Non-GAAP net profit was 787 million yuan, significantly above the expected 563 million yuan - Advertising revenue grew by 23% year-on-year to 2.57 billion yuan, contributing to the overall revenue increase [1] - Gross margin improved by 0.2 percentage points to 36.7%, while adjusted net profit margin increased by 2.6 percentage points to 10.2% [1] Development Trends - The upward trend in profit margins is driven by strong advertising business growth - The company anticipates Q4 2025 advertising revenue to increase by 23% to 2.93 billion yuan, with a projected gross margin of 37% and adjusted operating profit margin of 9% [1] - Long-term profit margin improvement is expected due to revenue growth, better revenue structure, and operational leverage [1] Game Revenue and New Releases - Game revenue in Q3 2025 decreased by 17% year-on-year to 1.511 billion yuan due to a high base from Q3 2024 - New game projects are underway, including "Escape from Duckkov" and "Three Kingdoms: Hundred Generals Card," with potential revenue contributions starting from Q2 2026 [2] - The company reported a 7% increase in value-added service revenue to 3.02 billion yuan, with a 17% rise in paid user count to 35 million [2] Profit Forecast and Valuation - The net profit forecast for 2025 and 2026 has been raised by 7.8% and 2.3% to 2.44 billion yuan and 3.06 billion yuan, respectively - Current stock prices correspond to P/E ratios of 40/29 times and 36/26 times for 2025/2026 [2] - Target prices have been adjusted upward by 7.4% and 7.8% to 29 USD and 220 HKD, indicating potential upside of 6.7% and 3.4% from current prices [2]

Core Insights - The company reported better-than-expected profits for Q3 2025, with revenues of RMB 7.7 billion, a year-on-year increase of 5.2%, aligning with market expectations [1] - The gross margin improved to 36.7% quarter-on-quarter, while adjusted net profit reached RMB 790 million, exceeding market expectations of RMB 640 million [1] - User traffic growth accelerated, with daily active users (DAU) increasing by 9.3% to 117 million and monthly active users (MAU) rising by 8.0% to 376 million, achieving record highs [1] Advertising Business Performance - The company experienced a 23% year-on-year growth in advertising revenue in Q3 2025, driven by improved ad supply and effectiveness [1] - The outlook for the advertising business remains positive, with expectations of over 20% growth in Q4 2025, supported by continuous traffic growth and enhanced ad value [1] Gaming Segment Developments - Game revenue decreased by 17% year-on-year in Q3 2025 due to high base effects, but the performance of "Three Kingdoms: Strategizing the World" met expectations [2] - The company plans to launch a traditional Chinese version of the game in overseas markets in Q1 2026 and expand to more international regions in the second half of 2026 [2] - The self-developed game "Escape from Duckkov" achieved over 3 million global sales and a peak online player count of over 300,000, with potential to become the second highest-selling domestic single-player game [2] Future Projections and Ratings - The company has slightly raised its revenue growth forecast for Q4 2025 to 4.9% year-on-year, maintaining an adjusted operating profit margin forecast of 10% [2] - The target price has been adjusted to $32/247 HKD, corresponding to FY26E/FY27E price-to-earnings ratios of 34x/25x, with a "Buy" rating maintained [2]

Financial Performance - Bilibili reported total revenue of 7.69 billion RMB for Q3, representing a year-on-year growth of 5% [1] - Adjusted net profit reached 790 million RMB, showing a significant year-on-year increase of 233% [1] - As of September 30, the company held cash and cash equivalents, term deposits, and short-term investments totaling 23.49 billion RMB, indicating strong financial reserves [1] Revenue Structure - The revenue composition is diverse, with value-added services, advertising, gaming, and IP derivatives contributing 39%, 33%, 20%, and 8% respectively [3] - Revenue from value-added services reached 3.02 billion RMB, growing by 7% year-on-year [3] - Advertising revenue for Q3 was 2.57 billion RMB, accelerating with a year-on-year growth of 23%, with the top five contributing industries being gaming, internet services, digital appliances, e-commerce, and automotive [3] - Gaming revenue amounted to 1.51 billion RMB [3] User Metrics - Bilibili achieved record user engagement, with daily active users reaching 117 million and monthly active users at 376 million [5] - Average daily usage time increased to 112 minutes [5] - The number of official members grew by 10% year-on-year, reaching 278 million, with a stable 12-month retention rate of 80% [5] - The viewing time for videos longer than 5 minutes increased by nearly 20%, indicating a strong demand for in-depth content [5]

Core Viewpoint - The article discusses how the brand "Lefin" successfully leveraged Bilibili (B站) to achieve significant growth in sales and brand recognition, particularly during the Double Eleven shopping festival, by focusing on "deep planting" strategies that resonate with the younger audience [2][3][25]. Group 1: Lefin's Success on Bilibili - During the Double Eleven event, Lefin's GMV on Bilibili saw a threefold increase year-on-year, with a 353% growth in unique visitors and a conversion rate of 4.1% [2]. - Lefin's customer acquisition ROI on Bilibili increased by 51% year-on-year, indicating improved efficiency in marketing efforts [2]. - Since 2021, Lefin has positioned Bilibili as a primary communication channel, moving beyond traditional influencer marketing to create engaging content that fosters a deeper connection with consumers [2][3]. Group 2: Why Choose Bilibili? - In 2021, Lefin identified Bilibili as a suitable platform for customer acquisition, especially when offline operations were not yet established [6]. - Bilibili's user base is younger, more diverse in interests, and has a higher purchasing power, making it an ideal platform for Lefin's marketing strategy [9]. - The platform's content ecosystem supports various forms of deep content, which enhances brand loyalty and encourages repeat purchases [10]. Group 3: Methodology for Utilizing Bilibili - To effectively use Bilibili, brands must tailor their strategies to align with the platform's unique user demographics and preferences [12]. - Lefin adopted a content-driven approach, focusing on educational and engaging material rather than straightforward product promotion [12][13]. - Collaborations with influential creators on Bilibili have allowed Lefin to reach a broader audience and establish a strong brand presence [13]. Group 4: Importance of Long-term Engagement - Sustained engagement on Bilibili is crucial for brands to penetrate consumer mindsets effectively [16]. - Lefin's long-term partnership with Bilibili has led to valuable insights into user behavior and preferences, allowing for more targeted marketing strategies [19]. - The brand's ability to produce high-quality content has positioned it as a key player in Bilibili's knowledge and technology sectors [17]. Group 5: Broader Implications for Brands - Bilibili's commercial potential has been underestimated, but it is emerging as a vital battleground for brands to enhance their marketing strategies [25]. - Other brands, such as Estée Lauder and Anta, have also achieved impressive results on Bilibili, demonstrating the platform's effectiveness for various industries [24]. - The article emphasizes that brands can find new opportunities for user engagement and marketing success by focusing on quality content and deep-rooted brand narratives on Bilibili [25].