BILIBILI(HK:09626)2024-05-24 07:32Investment Rating - The report maintains a "Buy" rating for Bilibili (9626.HK) [2] Core Insights - The company reported a significant narrowing of losses in Q1 2024, with total revenue reaching 5.665 billion yuan, a year-on-year increase of 11.74%. The net loss attributable to shareholders was 749 million yuan, with an adjusted net loss of 456 million yuan, showing a quarter-on-quarter decrease of 17.98% and a year-on-year decrease of 55.77% [3] - Daily active users reached a record high of 102 million, with monthly active users at 342 million, reflecting a year-on-year growth of 9% and 8% respectively. The average daily usage time was 105 minutes, indicating strong user engagement and community recognition [3] - The value-added services segment generated revenue of 2.529 billion yuan, up 17.28% year-on-year, while advertising revenue increased by 31.20% to 1.669 billion yuan, driven by new advertising scenarios and the upcoming "618" shopping festival [3] - Mobile gaming revenue declined by 13.15% to 983 million yuan, attributed to the natural decline of older games. A new strategy game is set to launch in June 2024, which is expected to boost mobile gaming revenue [3] - The report suggests that Bilibili is on a growth trajectory, with expected revenue growth rates of 11.23%, 13.07%, and 10.35% for 2024-2026, reaching 25.059 billion yuan, 28.334 billion yuan, and 31.265 billion yuan respectively [3][4] Financial Forecast Summary - Revenue (in million yuan) for 2024E is projected at 25,059, with a growth rate of 11.23% - Net profit (in million yuan) for 2024E is forecasted at -1,925, with a profit growth rate of 60.08% - Gross margin is expected to improve to 29.77% in 2024E, up from 24.16% in 2023A [4][8]