BILIBILI(BILI) 东吴证券·2025-02-23 23:59Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company reported better-than-expected performance in Q4 2024, with total revenue reaching 7.734 billion yuan, a year-on-year increase of 22% and a quarter-on-quarter increase of 6%, surpassing Bloomberg's consensus estimate of 7.639 billion yuan [3][9] - The advertising business is expected to continue its growth potential, with Q4 2024 advertising revenue of 2.389 billion yuan, up 24% year-on-year and 14% quarter-on-quarter. The company aims to consolidate its advertising budget in key industries while exploring new advertising demands from emerging sectors [3] - The gaming segment continues to operate with a long-term strategy, with Q4 2024 gaming revenue of 1.798 billion yuan, a year-on-year increase of 79%. The performance of the game "Three Kingdoms: Strategy" remains strong, and the company is focused on its long-term operation in the domestic market and overseas expansion [3] Summary by Relevant Sections Revenue and Profit Forecast - The company expects total revenue for 2025-2027 to be 29.858 billion yuan, 31.822 billion yuan, and 33.801 billion yuan respectively, with Non-GAAP net profits projected at 1.935 billion yuan, 3.027 billion yuan, and 4.201 billion yuan [3][10] - The current price-to-earnings (P/E) ratios for 2025-2027 are estimated at 36.02, 23.03, and 16.59 respectively, indicating a positive outlook for the company's profitability [3][10] Financial Metrics - The company achieved a gross margin of 36.1% in Q4 2024, an increase of 9.9 percentage points year-on-year and 1.2 percentage points quarter-on-quarter, benefiting from higher-margin game and advertising revenues [9] - The company anticipates that gross margins could reach 40-45% in the medium to long term, with further cost control expected to improve operating profit margins to 15-20% [9]