BILIBILI(HK:09626)2024-05-24 09:32Investment Rating - The report maintains a "Buy" rating for the company [1][4] - The market price is HKD 119.80, with a sector rating of outperforming the market [1] Core Views - The company's revenue for Q1 2024 reached RMB 5.665 billion, a year-on-year increase of 12%, while the adjusted net loss narrowed by 57% to RMB 440 million [4] - Advertising revenue grew significantly, with a 31% year-on-year increase to RMB 1.669 billion, driven by enhanced advertising inventory and algorithm efficiency [4] - The company is set to launch a new mobile game, "Three Kingdoms: Strategize the World," in June, which is expected to boost revenue [4] - Gross margin improved for seven consecutive quarters, reaching 28.3%, up 6.6 percentage points year-on-year [4] Financial Summary - The company’s total market capitalization is approximately HKD 50.47 billion [3] - The average daily trading volume over the past three months is HKD 466.36 million [3] - The number of shares issued is 421.26 million, with 337.55 million shares in circulation [3] Revenue and Profit Forecast - Projected revenue growth rates for the upcoming years are 13% for 2024, 15% for 2025, and 14% for 2026 [5] - Non-GAAP net profit is expected to improve from a loss of RMB 579 million in 2024 to a profit of RMB 1.21 billion in 2025 [5] - The company anticipates achieving profitability in Q3 2024 [4] User Engagement Metrics - Daily active users (DAU) and monthly active users (MAU) reached 102 million and 342 million, respectively, with daily usage time averaging 105 minutes [4] - Video views per day increased by 22% year-on-year, reaching 5 billion [4]