BILIBILI(HK:09626)2024-05-24 08:02Investment Rating - The report maintains a "Recommended" rating for the company [2] Core Views - The company reported a significant narrowing of losses in Q1 2024, with revenue reaching 5.665 billion yuan, a year-on-year increase of 11.74%. The net profit attributable to shareholders was a loss of 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% [2] - The average daily usage time reached a new high, with active community engagement remaining stable. In Q1 2024, the daily active users reached 102 million (YoY +9%), and monthly active users reached 342 million (YoY +8%), with an average daily usage time of 105 minutes [2] - The value-added services business showed steady operation, while the advertising business continued to grow significantly. In Q1 2024, the revenue from value-added services was 2.529 billion yuan, up 17.28% year-on-year, and advertising revenue was 1.669 billion yuan, up 31.20% year-on-year [2] - The gaming business faced challenges, with mobile game revenue declining by 13.15% year-on-year to 983 million yuan. The company is focusing on the performance of new game launches, with a strategy game set to be released on June 13, 2024 [2] - The company is expected to maintain healthy community growth and diversify its business. Revenue growth rates for 2024-2026 are projected at 11.23%, 13.07%, and 10.35%, reaching 25.059 billion yuan, 28.334 billion yuan, and 31.265 billion yuan respectively [2][3] Financial Summary - For 2024, the company is projected to have a revenue of 25.059 billion yuan, with a growth rate of 11.23%. The net profit is expected to be a loss of 1.925 billion yuan, with a profit growth rate of 60.08% [3][7] - The gross margin is expected to improve from 24.16% in 2023 to 29.77% in 2024, while the net margin is projected to improve from -21.41% to -7.68% [3][7] - The earnings per share (EPS) is projected to improve from -11.67 yuan in 2023 to -4.57 yuan in 2024, with a price-to-earnings (P/E) ratio expected to be 75.13 in 2026 [3][7]