Zhi Tong Cai Jing·2026-03-10 02:05Core Viewpoint - The report from China Merchants Securities maintains a "Buy" rating for Bilibili-W (09626), highlighting the company's strong performance in the gaming sector and advertising growth, with expectations for significant revenue increases from 2026 to 2028 [1] Group 1: Financial Performance - In Q4, the company achieved revenue of 8.32 billion yuan, a year-on-year increase of 8%, with adjusted net profit reaching 878 million yuan, up 94% year-on-year, resulting in a net profit margin of 10.6%, an increase of 4.8 percentage points [1] - The total revenue for the year reached 30.35 billion yuan, a 13% increase year-on-year, with adjusted net profit of 2.59 billion yuan, marking the first time the company achieved annual profitability [1] Group 2: Business Segments - The value-added services segment generated revenue of 3.26 billion yuan in Q4, a 6% increase year-on-year, driven by growth in paid memberships and other services [2] - The advertising business saw revenue of 3.04 billion yuan in Q4, a 27% increase year-on-year, attributed to improved ad product supply and effectiveness [2] - The mobile gaming segment reported revenue of 1.54 billion yuan in Q4, primarily from the early success of the exclusive SLG game "Three Kingdoms: Strategy of the World," which launched in June 2024 [2] Group 3: User Engagement and Content Strategy - The company reported a daily active user count of 113 million in Q4, a 10% year-on-year increase, and monthly active users reached 366 million, up 8% [3] - The average daily usage time increased to 107 minutes, an 8-minute rise year-on-year, with the number of premium members reaching 25.35 million [3] - The company continues to focus on high-quality content, enhancing user engagement through exclusive events and leveraging AI to boost content consumption [3]