BILIBILI(BILI) 交银国际证券·2024-11-15 06:18Investment Rating - The report maintains a "Buy" rating for the company with a target price of USD 25.00, indicating a potential upside of 34.5% from the current price of USD 18.59 [5][15]. Core Insights - The company achieved its first operational profit in Q3 2024, with revenues of RMB 7.3 billion, reflecting a year-on-year growth of 26% and a quarter-on-quarter growth of 19% [1][2]. - The adjusted operational profit reached RMB 272 million, surpassing market expectations, driven by improved revenue structure and cost management [1][3]. - Game revenue surged by 84% year-on-year, significantly contributing to overall revenue growth, while advertising revenue grew by 28% [2][3]. Financial Overview - Total revenue projections for 2024E are RMB 26.7 billion, with a year-on-year growth of 18.6% [4]. - The company is expected to achieve a net profit of RMB 1.9 billion in 2025, reflecting a significant turnaround from previous losses [4]. - The gross margin is anticipated to improve to 36% in Q4 2024, supported by high-margin game and advertising revenues [2][13]. User Engagement Metrics - Monthly active users (MAU) reached 30 million, with a stable user engagement reflected in daily average usage time [11]. - The company reported a 10% year-on-year increase in total user hours, indicating strong content consumption growth [10]. Market Position and Valuation - The company’s market capitalization stands at approximately USD 6.17 billion, with a year-to-date stock price increase of 52.75% [6]. - The report suggests that the stock price has limited downside potential, with a reasonable target price range of USD 20-28 based on normalized profit margins [3][14].