BILIBILI(US:BILI) Zhao Yin Guo Ji·2025-07-24 02:15Company Analysis - Bilibili (BILI US) is expected to achieve a total revenue of RMB 7.38 billion in Q2 2025, representing a year-on-year growth of 20% and a quarter-on-quarter growth of 5% [2] - Adjusted net profit is projected to increase by 36% quarter-on-quarter to RMB 493 million, aligning with consensus expectations [2] - The strong performance in advertising and mobile gaming is supported by a well-established commercial infrastructure, contributing to the improvement in profit margins [2] - The FY25 total revenue forecast has been slightly adjusted downwards by 1% due to a more conservative outlook for value-added services in the second half of 2025, considering intense industry competition [2] - Despite the downward adjustment, the company’s profit growth outlook remains positive due to enhanced commercialization capabilities and operational leverage [2] - The target price for Bilibili has been raised to USD 28.8 from USD 26.5, maintaining a "Buy" rating [2] Market Overview - Global market sentiment has improved due to agreements between the US and Japan, and nearing agreements between the US and Europe, which has positively impacted Hong Kong stocks [3] - The Hong Kong stock market saw a continuation of upward trends, led by sectors such as information technology, consumer discretionary, and financials, while industrials and utilities declined [3] - A shift in capital from new consumption to the internet sector was noted, with southbound funds recording a net sell of HKD 1.32 billion [3] - In the A-share market, there was a pullback after reaching highs, with declines in sectors like building materials, defense, and machinery, while non-bank financials, beauty care, and home appliances saw gains [3] - Investors are closely monitoring the progress of China's anti-involution policies, with expectations that this round of capacity reduction may affect a broader range of industries, including steel, coal, building materials, photovoltaic, new energy equipment, lithium batteries, and pig farming [3]