BILIBILI(09626) 东方证券·2024-11-21 00:07Investment Rating - The report maintains a "Buy" rating for the company [3][19]. Core Insights - The company's total revenue for Q3 2024 reached 7.31 billion CNY, representing a year-over-year increase of 26% and a quarter-over-quarter increase of 19%. The growth was primarily driven by advertising and gaming businesses [1]. - The gross margin for Q3 2024 was 34.9%, an increase of 9.9 percentage points year-over-year and 5.6 percentage points quarter-over-quarter. Non-GAAP operating profit turned positive for the first time at 272 million CNY, with expectations of reaching 400 million CNY in Q4 2024 [1][2]. - The advertising revenue for Q3 2024 was 2.09 billion CNY, up 28% year-over-year and 3% quarter-over-quarter, contributing to an increase in overall gross profit [1][2]. - The gaming revenue for Q3 2024 was 1.82 billion CNY, showing a significant year-over-year increase of 84% and a quarter-over-quarter increase of 81%, mainly due to the performance of the new game "Three Kingdoms: Strategize the World" [1][2]. Summary by Sections Financial Performance - Q3 2024 total revenue: 7.31 billion CNY (yoy +26%, qoq +19%) [1]. - Q3 2024 gross margin: 34.9% (yoy +9.9pp, qoq +5.6pp) [1]. - Q3 2024 Non-GAAP operating profit: 272 million CNY, first positive result [1]. - Q4 2024 revenue forecast: 7.66 billion CNY (yoy +20.67%, qoq +4.86%) [7]. Revenue Breakdown - Advertising revenue in Q3 2024: 2.09 billion CNY (yoy +28%, qoq +3%) [1]. - Live streaming and VAS revenue in Q3 2024: 2.82 billion CNY (yoy +9%, qoq +10%) [1]. - Gaming revenue in Q3 2024: 1.82 billion CNY (yoy +84%, qoq +81%) [1]. Future Projections - Revenue projections for 2024-2026: 26.76 billion CNY (2024), 31.47 billion CNY (2025), 34.11 billion CNY (2026) [2][11]. - Target price set at 166.43 HKD (approximately 153.73 CNY) based on a 2.4x adjusted PS ratio for 2024 [2].