BILIBILI(BILI) 天风证券·2025-03-09 08:29Investment Rating - The investment rating for Bilibili (BILI) is "Buy" with a maintained rating for the next six months [4]. Core Insights - Bilibili reported Q4 2024 revenue of 7.73 billion yuan, exceeding Bloomberg consensus by 1.2%. Adjusted net profit was 450 million yuan, surpassing expectations by 15.3% [1]. - The mobile gaming segment generated 1.8 billion yuan in revenue, exceeding expectations by 0.6% and showing a year-on-year growth of 79%, driven by the strong performance of the exclusive strategy game "Three Kingdoms: Strategy of the World" [1][3]. - Advertising revenue reached 2.39 billion yuan, also exceeding expectations by 0.6%, with a year-on-year growth of 24%, attributed to product optimization and improved advertising efficiency [1][3]. - Value-Added Services (VAS) revenue was 3.08 billion yuan, surpassing expectations by 2.7%, with an 8% year-on-year increase due to growth in other value-added services and membership subscriptions [1]. - IP and derivative products revenue was 460 million yuan, falling short of expectations by 2.1%, with a year-on-year decrease of 16% [1]. User and Creator Metrics - The company reported a Daily Active User (DAU) count of 103 million and a Monthly Active User (MAU) count of 340 million, with a daily average usage time of 99 minutes [2]. - The number of monetizing creators (UP owners) reached 3.1 million, with total revenue from UP owners growing by 21% year-on-year [2]. - The number of UP owners earning revenue through video and live e-commerce increased by 68% year-on-year [2]. Cost Structure and Profitability - Operating costs were 4.95 billion yuan, a year-on-year increase of 5%, with revenue-sharing costs at 3.17 billion yuan, up 12% due to increased costs associated with mobile gaming [2]. - Gross margin improved significantly to 36.1%, reflecting a year-on-year increase of 10 percentage points [2]. - The adjusted net profit of 450 million yuan marked a turnaround from previous losses [2]. Advertising and Gaming Business Growth - The advertising business showed strong growth, with revenue per DAU increasing by over 20% year-on-year, driven by an expanding user base and enhanced advertising efficiency [3]. - The company plans to further open its ecosystem in 2024, embracing more advertising opportunities and optimizing its advertising infrastructure [3]. - The game "Three Kingdoms" is expected to continue driving revenue growth, with the company focusing on high-quality gameplay and careful commercialization [3]. Future Projections - Revenue forecasts for FY25E-FY27E are projected at 30.2 billion, 33.3 billion, and 36.6 billion yuan respectively, with non-GAAP net profits expected to be 2.05 billion, 3.8 billion, and 5 billion yuan [4].