Sou Hu Cai Jing·2025-11-17 05:42Core Viewpoint - The report from China Merchants Securities International indicates an optimistic outlook for Bilibili, with an upgrade in non-GAAP net profit forecasts and a "Buy" rating for its US stock, driven by strong revenue growth and effective cost control [1]. Financial Performance - Bilibili's revenue in Q3 increased by 5% year-on-year, meeting expectations [1]. - Non-GAAP operating profit and net profit exceeded expectations by 6% and 22%, respectively, attributed to better-than-expected cost control and efficiency improvements driven by AI [1]. Advertising and Gaming Segments - The advertising business is expected to perform strongly, with projected year-on-year revenue growth of 22% in Q4 and 19% in the following year, supported by rich content and a young user base [1]. - The gaming segment is anticipated to recover sequentially due to new popular products [1]. Long-term Outlook - The company is viewed positively for its ability to operate classic products and adapt to the preferences of younger users [1]. - The forecast for revenue growth is set at 13% and 9% for the next two years, with non-GAAP net profits expected to reach 2.5 billion and 3.5 billion yuan, respectively [1]. Investment Rating - China Merchants Securities International has assigned a "Buy" rating for Bilibili's US stock with a target price of $30 and a target price of 234 HKD for its H-shares [1].