BILIBILI(HK:09626)2024-06-25 09:01Investment Rating - The report maintains a "Buy" rating for the company, expecting its stock price to outperform the benchmark index by over 20% in the next 6-12 months [3][8]. Core Views - The company has seen significant growth in its gaming revenue, particularly from the newly launched mobile game "Three Kingdoms: Strategizing the World," which reached the third position on the iOS bestseller list shortly after its release. This is expected to contribute substantially to the company's game revenue for the year 2024 [3]. - The company's performance during the 618 shopping festival showed a remarkable increase in GMV (Gross Merchandise Volume), with a year-on-year growth of 146%. This indicates a strong improvement in the platform's monetization capabilities [3]. - The report projects an increase in revenue forecasts for 2024, 2025, and 2026, with expected revenues of RMB 26.18 billion, RMB 29.59 billion, and RMB 32.74 billion respectively [4]. Summary by Sections Revenue and Profit Forecast - The company’s projected sales revenue for 2024 is RMB 26,181 million, with a growth rate of 16% compared to 2023. The non-GAAP net profit is expected to be a loss of RMB 465 million, improving to a profit of RMB 1,250 million in 2025 and RMB 1,959 million in 2026 [4][6]. - The report indicates a significant increase in the company's operating income, with expectations of reaching RMB 29,588 million in 2025 and RMB 32,737 million in 2026 [4]. Market Performance - The company’s stock has shown a relative performance of 40.3% over the past months compared to the Hang Seng Index, indicating strong market interest and potential [2]. - The average daily trading volume over the past three months is reported at HKD 539.77 million, reflecting active trading and investor engagement [2]. Shareholder Information - The major shareholder, Chen Rui, holds a 12.1% stake in the company, indicating a significant level of insider investment [2]. Game Revenue Contribution - The newly launched mobile game is expected to significantly boost the company's game revenue, with projections of RMB 8.91 million, RMB 9.92 million, and RMB 10.07 million for Q2, Q3, and Q4 of 2023 respectively [3]. E-commerce Growth - The report highlights a 93% increase in advertising revenue during the 618 shopping festival, with the number of advertisers on the platform increasing by 313% year-on-year [3]. Valuation Metrics - The projected P/E ratios for 2025 and 2026 are 50.6 and 32.3 respectively, indicating a potential for growth in earnings relative to the stock price [4][6].