BILIBILI(HK:09626) KAIYUAN SECURITIES·2024-08-23 08:50Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company is expected to achieve accelerated revenue growth driven by advertising and gaming, with a potential for profitability in a single quarter [5] - The company reported a significant reduction in net losses, with a projected path to profitability in the coming years [5] - The report maintains profit forecasts for 2024-2026, with expected net profits of -1.38 billion, 0.29 billion, and 7.43 billion respectively [5] Revenue and Profitability - For Q2 2024, the company reported revenue of 6.127 billion (up 15.5% year-on-year) and a gross margin of 29.9% (up 6.8 percentage points) [5] - The adjusted net loss for Q2 2024 was 271 million (a 71.9% year-on-year reduction) [5] - Operating cash flow turned positive at 1.751 billion for Q2 2024, compared to a negative 21.2 million in Q2 2023 [5] Business Segments Performance - Value-added services revenue reached 2.566 billion (up 11.5% year-on-year), driven by an increase in membership and payment [6] - Advertising revenue was 2.037 billion (up 29.5% year-on-year), attributed to optimized advertising products and a significant increase in the number of advertisers [6] - Mobile gaming revenue was 1.007 billion (up 13.1% year-on-year), primarily due to contributions from popular games [6] User Engagement and Growth - The platform's daily active users (DAU) reached 102.3 million (up 8% year-on-year), with a monthly active user (MAU) count of 339 million (up 6% year-on-year) [7] - The average user engagement time was 102 minutes per day (up 7.4% year-on-year), indicating increased user stickiness [7] - The retention rate for members over 12 months was 80%, with a significant increase in users engaging in consumption behaviors [7] Financial Projections - Revenue projections for the upcoming years are as follows: 26.813 billion for 2024, 30.474 billion for 2025, and 34.227 billion for 2026 [8] - The company is expected to improve its net profit margin significantly by 2026, with a projected net profit of 743 million [8] - The projected earnings per share (EPS) for 2024, 2025, and 2026 are -3.3, 0.1, and 1.8 respectively [8]