BILIBILI(HK:09626) Changjiang Securities·2024-05-28 02:01Investment Rating - The investment rating for Bilibili-W (9626.HK) is "Buy" and is maintained [5]. Core Insights - Bilibili reported Q1 2024 revenue of 5.665 billion CNY, a year-on-year increase of 12%. Gross profit reached 1.605 billion CNY, up 45% year-on-year, with a gross margin of 28.3%, an increase of 6.5 percentage points compared to the same period last year. The Non-GAAP net loss was 456 million CNY, narrowing by 56% year-on-year. The company achieved positive operating cash flow of 638 million CNY for three consecutive quarters [6][7]. Revenue Analysis - Bilibili's advertising revenue for Q1 2024 was 1.669 billion CNY, a year-on-year growth of 31%. The company has optimized its advertising products and upgraded its effect delivery platform, leading to a more than 50% increase in effect advertising revenue [6][7]. - The revenue from value-added services was 2.529 billion CNY, a 17% increase year-on-year, driven by growth in live streaming and value-added service sales. The number of official members reached 236 million, with a 12-month retention rate of approximately 80% [6][7]. - Game revenue was 983 million CNY, a decline of 13% year-on-year, primarily due to decreased revenue from older games. New game launches are expected to boost future revenue [6][7]. User Engagement Metrics - Daily active users (DAU) grew by 9% year-on-year to 102.4 million, while monthly active users (MAU) increased by 8% to 341.5 million. The average daily usage time reached a historical high of 105 minutes [6][7]. - The average daily video views approached 5 billion, a 22% year-on-year increase, with Story-Mode vertical video views also growing by 22% [6][7]. Profitability Insights - Bilibili's gross profit for Q1 2024 was 1.605 billion CNY, with a gross margin of 28.3%, marking the seventh consecutive quarter of sequential improvement. This was attributed to increased revenue and improved monetization efficiency [7]. - The Non-GAAP net loss narrowed to 456 million CNY, a 56% year-on-year reduction, with operating cash flow turning positive for three consecutive quarters [7]. Earnings Forecast - The company is expected to optimize its commercialization capabilities and operational efficiency, projecting revenues of 25.4 billion CNY and 28.2 billion CNY for 2024 and 2025, respectively, while maintaining a "Buy" rating [7].