BILIBILI(HK:09626) Huafu Securities·2024-06-24 07:31Investment Rating - The report assigns a "Buy" rating for the company [4][18]. Core Views - The game "Three Kingdoms: Strategy of the World," exclusively represented by the company, performed better than expected during its public testing phase, ranking 3rd in the sales chart shortly after launch [1]. - The game's total revenue reached approximately 102 million yuan within the first week, with stable daily revenue around 18 million yuan after the initial launch [2]. - The company has reduced its advertising spending significantly after the initial launch, with a peak in ad placements on the day of the game's public testing [3]. Financial Forecast and Investment Suggestions - The company is projected to generate revenues of 24.73 billion yuan, 28.02 billion yuan, and 30.93 billion yuan for the years 2024, 2025, and 2026 respectively, with net profits expected to improve from a loss of 1.85 billion yuan in 2024 to a profit of 663 million yuan in 2026 [4][10]. - The report indicates a significant increase in net profit growth rates, projecting a 61.6% increase in 2024 and a staggering 372.5% increase in 2026 [15].