BILIBILI(09626) 国海证券·2024-05-26 14:31Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company reported a strong performance in advertising growth, with a notable focus on the upcoming game "Three Kingdoms: Strategizing the World" set to launch in June [1][2] - The Q1 2024 financial results showed a revenue of 5.7 billion RMB, representing a year-over-year increase of 12% but a quarter-over-quarter decrease of 11% [2] - The adjusted net profit for Q1 2024 was a loss of 440 million RMB, significantly narrowing compared to the previous year [2] Financial Performance - The company's Q1 2024 revenue breakdown includes: - Mobile gaming revenue of 983 million RMB, down 13% year-over-year - Value-added services revenue of 2.529 billion RMB, up 17% year-over-year - Advertising revenue of 1.669 billion RMB, up 31% year-over-year - IP derivatives and other business revenue of 484 million RMB, down 5% year-over-year [4][6] - The overall gross margin improved to 28.3%, an increase of 6.6 percentage points year-over-year [4] - The monthly active users (MAU) grew by 8% year-over-year to 341.5 million, while daily active users (DAU) increased by 9% to 102 million [4][6] Future Projections - Revenue forecasts for FY2024-2026 are projected at 25.9 billion, 29.5 billion, and 33.6 billion RMB respectively, with a non-GAAP net profit forecast of -360 million, 1.57 billion, and 2.41 billion RMB [5][7] - The target price for 2024 is set at 129 RMB or 142 HKD, with a valuation based on MAU and price-to-sales ratios [4][7]