BILIBILI(HK:09626) Orient Securities·2024-05-26 04:03Investment Rating - The report maintains a "Buy" rating for the company [5][3] Core Insights - The company's total revenue for Q1 2024 reached 5.665 billion, representing a year-over-year increase of 11.74% but a quarter-over-quarter decrease of 10.78%. The gross margin for Q1 2024 was 28.3%, up 6.56% year-over-year and 2.20% quarter-over-quarter. Non-GAAP net profit attributable to the parent company was -440 million, a decrease of 57.25% year-over-year and 20.84% quarter-over-quarter, indicating a continued reduction in losses [2][3] - Advertising revenue for Q1 2024 was 1.667 billion, up 31.20% year-over-year but down 13.51% quarter-over-quarter. This segment's revenue share increased from 25% in the same period last year to 29%, driven by user growth and new technology applications [2] - The live streaming and value-added services (VAS) revenue for Q1 2024 was 2.5 billion, reflecting a year-over-year increase of 17.28% but a quarter-over-quarter decrease of 11.49%. The company expects Q2 revenue to reach 2.6 billion, a 15% year-over-year increase and a 5% quarter-over-quarter increase [2][3] Financial Forecasts - The company projects revenues of 25.711 billion, 28.680 billion, and 30.771 billion for the years 2024, 2025, and 2026 respectively. The previous forecasts were slightly adjusted downwards due to lower expectations for derivative products and other business segments [3][9] - The report anticipates that the company's non-GAAP operating profit will turn positive by Q3 2024, with expectations of a significant recovery in profitability in the coming years [3][9] Valuation - The target price for the company's stock is set at 154.08 HKD, based on an adjusted average price-to-sales ratio of 2.3x for comparable companies in 2024 [3][10]