BILIBILI(09626) Orient Securities·2025-05-22 00:20Investment Rating - The report maintains a "Buy" rating for the company with a target price of 194.00 HKD (178.27 CNY) [2][5]. Core Insights - The company's revenue is expected to grow significantly, driven by the upcoming S8 anniversary season of the game "Three Kingdoms: Strategy" and improvements in advertising efficiency. Revenue projections for 2025, 2026, and 2027 are 31.2 billion, 34.1 billion, and 35.9 billion CNY respectively [2]. - The report highlights a strong performance in the advertising and gaming sectors, with Q1 2025 revenue reaching 7.0 billion CNY, a year-on-year increase of 23.6% [10]. - The company is expected to benefit from a growing user base and improved monetization capabilities as users mature [2]. Financial Projections - Revenue for 2025 is projected at 31,195 million CNY, with a year-on-year growth of 16.26% [3][11]. - The company anticipates a Non-GAAP net profit of 892 million CNY in 2025, recovering from a loss of 1,347 million CNY in 2024 [3][11]. - Gross margin is expected to improve to 38.05% in 2025, up from 24.16% in 2023 [3][11]. Key Performance Metrics - The report indicates that the company's daily active users (DAU) reached 36.8 million in Q1 2025, reflecting an 8.2% year-on-year increase [10]. - Advertising revenue for Q1 2025 was 2.0 billion CNY, a 19.7% increase year-on-year, driven by strong growth in performance-based advertising [10]. - The gaming segment saw a revenue of 1.7 billion CNY in Q1 2025, marking a 76% increase year-on-year, primarily due to the success of "Three Kingdoms: Strategy" [10].