GOLDEN SUN SECURITIES·2026-03-09 09:48Investment Rating - The report maintains a "Buy" rating for Bilibili [3][6] Core Views - Bilibili's advertising revenue growth is strong, with a quarter-on-quarter increase of 4.7 percentage points to 27.4% [2] - The company is gradually increasing its investment in AI, which is expected to enhance content productivity and commercialization efficiency in the medium to long term [3] - The user engagement metrics are positive, with daily active users reaching 113 million, a year-on-year increase of 10% [1] Financial Performance - For Q4 2025, Bilibili reported revenue of 8.3 billion yuan, a year-on-year growth of 7.6% [1] - The gross profit for the quarter was 3.1 billion yuan, with a gross margin of 37.0% [1] - Non-GAAP net profit for the quarter was approximately 900 million yuan, with a non-GAAP net profit margin of about 10.5% [1] User Metrics - The average daily usage time per user increased by 8 minutes to 107 minutes [1] - Monthly paying users reached 35.66 million, with a total of 25.35 million premium members, 80% of whom are annual or auto-renewal subscribers [1] Revenue Breakdown - Revenue from mobile games, value-added services, advertising, and IP derivatives was 1.5 billion, 3.3 billion, 3.0 billion, and 500 million yuan respectively, with year-on-year changes of -14.3%, +5.8%, +27.4%, and +2.6% [1] - The advertising segment is expected to continue growing due to improved inventory development and conversion efficiency [2] Future Projections - Revenue projections for 2026-2028 are estimated at 33 billion, 36.1 billion, and 39.2 billion yuan, with year-on-year growth rates of 8.9%, 9.2%, and 8.5% respectively [3][5] - Non-GAAP net profit is projected to reach 3 billion, 3.8 billion, and 4.6 billion yuan for the same period [3][5]