Core Viewpoint - Bilibili (BILI.US) shares have seen a pre-market increase of 3.6% in the US, with H-shares rising nearly 7% during the day, driven by the success of its self-developed game "Escape from Duckkov," which has sold over 3 million copies and peaked at over 300,000 concurrent users [1] Group 1: Financial Performance - Following the third-quarter earnings announcement, major investment banks including Morgan Stanley, Citigroup, Credit Lyonnais, and CICC have raised their target prices for Bilibili [1] - Guosheng Securities released a report indicating that Bilibili's gaming business may expand the "Escape from Duckkov" IP from PC to console and mobile platforms, potentially leading to sustained revenue growth [1] Group 2: Shareholder Activity - According to information from the Hong Kong Stock Exchange, Norges Bank increased its stake in Bilibili-WH shares from 4.89% to 5.16% as of November 20, with an average purchase price of HKD 195.8721 [1]

Investment Rating - The report assigns a "Buy" rating for the company, marking it as a first-time coverage [1]. Core Insights - The company is positioned for growth through a dual engine of self-developed games and the TapTap platform, which serves as a comprehensive game community and distribution platform [1][2]. - The self-developed games have shown strong performance, with titles like "Let's Go Muffin" and "Heart Town" driving revenue growth, while the TapTap platform is expected to expand significantly due to its user base and monetization potential [2][34]. Summary by Sections Company Overview - The company is a global game developer and publisher with a diverse portfolio, including popular titles such as "Let's Go Muffin," "Heart Town," and "Torchlight: Infinite." It ranks 22nd among mobile game publishers in China and is expected to enter the global top 100 by October 2025 [1]. Investment Logic - **Self-Developed Game Capability**: The company has consistently validated its ability to develop successful games, with a strong product matrix and ongoing growth from new releases and international expansions [2][12]. - **TapTap Platform Growth**: The platform benefits from a user-game dual effect, with a zero-revenue-sharing policy attracting quality games and users. The introduction of a PC version and the expansion of the iOS ecosystem are expected to further enhance growth [2][34][39]. Financial Forecasts and Valuation - The company is projected to achieve significant profit growth, with net profits expected to reach 1.7 billion, 2.1 billion, and 2.55 billion CNY in 2025, 2026, and 2027, respectively, reflecting growth rates of 111.2%, 24.3%, and 20.0% [2][46]. - The target price is set at 103.2 HKD, based on a 22x PE ratio for 2026, indicating a strong valuation relative to industry peers [2][50]. Revenue Projections - Total revenue is expected to grow from 3.39 billion CNY in 2023 to 8.84 billion CNY by 2027, with a compound annual growth rate (CAGR) of 31.0% from 2025 to 2027 [46][47]. - Game revenue is projected to increase significantly, driven by successful titles and new game launches, while information service revenue from TapTap is also expected to grow robustly [46][47]. Cost and Margin Expectations - The company anticipates improving gross margins, with overall gross margins projected to rise from 69.4% in 2024 to 76.3% by 2027, driven by a higher proportion of self-developed games [48][49].

Core Viewpoint - Bilibili's self-developed game "Escape from Duckkov" has achieved significant sales success shortly after its global release, indicating strong market demand and potential revenue growth for the company [1] Sales Performance - The game was launched on October 16, with a price of 58 yuan in the domestic market and an 88% discount during the initial release period [1] - Within just three days of its launch, the game sold over 500,000 copies, with a peak of over 220,000 online players [1] - As of the evening of October 22, sales surpassed 1 million copies, receiving 8,465 reviews on Steam, with 96% positive feedback [1] Revenue Projections - The research report from Everbright Securities estimates that the game's total sales could exceed 3 million copies, potentially generating over 150 million yuan in revenue [1]

Core Insights - The launch of the self-developed anime-style third-person shooting mobile game "Kara Bichu" by Chuangmeng Tiandi (01119) marks a significant milestone, transitioning from the investment phase to large-scale operation and revenue generation [1][10] - The game achieved remarkable initial success, topping various app store charts, including App Store free list and multiple Android platforms, indicating strong market appeal and user interest [1][3] Market Performance - During the testing phase, "Kara Bichu" demonstrated strong market potential with a user-generated content share of 46.5%, leading to positive word-of-mouth among players [3] - User acquisition and retention rates exceeded expectations, laying a solid foundation for the public launch [3] Game Features and Innovations - The game combines "aesthetic appeal" and "innovation" through its unique "string transformation" gameplay and deep integration of 2D and 3D art styles, allowing players to switch forms for enhanced combat dynamics [3][5] - It offers diverse gameplay modes catering to different player preferences, including tactical enthusiasts and casual gamers, ensuring broad appeal [5] Gameplay Mechanics - The game incorporates low-barrier features such as assisted aiming and automatic firing, making it accessible for new players while still providing depth for experienced gamers [5] - New game modes like "Super String Advance" and "Personal Brawl" are designed to enhance the mobile experience, removing traditional systems and introducing card-based strategies [5] Development and Collaboration - Chuangmeng Tiandi partnered with industry leaders like Tencent Cloud to enhance game quality, utilizing AI tools to improve development efficiency by over 10% [7] - Collaboration with iQOO has enabled the integration of advanced graphics rendering technology, providing players with a PC-level visual experience on mobile devices [7] Player Engagement - The game includes non-combat interactions, allowing players to build relationships with characters, adding a layer of emotional engagement and relaxation [8] - This feature caters to diverse player emotional needs, enhancing the overall gaming experience [8] Future Prospects - The successful launch of "Kara Bichu" positions Chuangmeng Tiandi for significant user base expansion and establishes it as a key IP for ongoing development [10] - The company plans to introduce new characters and expand the IP through additional game series, aiming to meet global player expectations [10]

Group 1 - Tencent's new game "Code GP" has launched a technical test recruitment, focusing on high mobility and solo shooting gameplay, with "爽打" (爽打) as a core competitive feature [1] - The game differentiates itself from Tencent's existing titles like "Exoborne" and "Code: Eclipse," representing a new self-developed project [1] - Despite having a first-mover advantage, "Code GP" faces challenges from increased competition in the genre and the balance between "爽打" and strategic elements affecting player retention [1] Group 2 - Youxing Network's first self-developed game "Star Tower Traveler" is set for public testing on October 20, featuring a lightweight operation system and strategic construction core [2] - The game aims to carve out a new niche in the crowded open-world anime game market, with a focus on controllable development costs and shorter recovery cycles [2] - The 2025 market for anime games shows signs of recovery, but past failures of titles like "White Night Extreme" and "Mist Realm Sequence" highlight industry risks [2] Group 3 - Ruyi Jingxiu's simulation game "Immortal World Master" is scheduled for its first test on October 23, combining popular elements of "infinite flow crossing" and "apocalyptic cultivation" [3] - The game seeks to differentiate itself in the competitive Xianxia genre through innovative storytelling and diverse gameplay [3] - Challenges include rising user acquisition costs and the need for frequent content updates to maintain player engagement, as seen in other titles that failed to sustain momentum [3]

Core Viewpoint - The company has faced significant challenges in recent years, including strategic missteps and financial losses, but is now focusing on core gaming operations and self-developed projects to regain profitability, particularly through the launch of its key game, "Strinova" [1][3][31] Group 1: Company Background and Challenges - The company initially thrived by introducing popular mobile games to the domestic market but has struggled since 2020, experiencing continuous revenue decline and losses amounting to 2.5 billion yuan [1][5] - A strategic shift has occurred, with the company divesting from non-core businesses and refocusing on self-developed games, particularly "Strinova," which is seen as crucial for future profitability [3][10] Group 2: Game Development and Strategy - The company has divided its self-development efforts into two phases, with the first phase focusing on commercial projects like "Honor All-Stars," which generated over 1 billion yuan in revenue shortly after launch [6] - The second phase centers on "Strinova," a multi-platform game that has garnered significant attention due to its unique gameplay mechanics and design [8][10] Group 3: Financial Performance and Future Outlook - Recent financial reports indicate that losses have narrowed, with the company's leadership stating that achieving balance with "Strinova" is critical for future success [5][12] - The game is set to launch on multiple platforms in 2025, with expectations that it will drive significant revenue growth [12][21] Group 4: International Expansion and Market Strategy - The company is actively expanding into the Middle East, recognizing it as a key growth market due to its young population and increasing acceptance of gaming [14][15] - The company has adjusted its operational strategy for "Strinova," taking back control from Tencent to better align with user needs and preferences [16][18] Group 5: Existing Game Portfolio and Revenue Model - The company continues to leverage its existing portfolio, including long-standing titles like "Subway Surfers," which remains popular after over 11 years in the market [23][25] - Recent adjustments to the revenue-sharing model for new game releases aim to enhance financial stability and profitability [30]

Core Viewpoint - Douyin is undergoing significant organizational changes, particularly in its gaming and entertainment sectors, with leadership transitions aimed at enhancing its operational efficiency and expanding its content offerings [2][3][4]. Group 1: Leadership Changes - Douyin's gaming business has been reassigned to Chen Duye, indicating a shift in management structure as he expands his responsibilities beyond music and short dramas to encompass the gaming sector [2]. - Han Shangyou, who previously contributed significantly to Douyin's live streaming and gaming sectors, is stepping back from direct oversight of gaming, allowing him to explore other opportunities within Douyin [3][4]. Group 2: Business Development - Douyin's early strategy involved self-developing games to fill content gaps, but progress in this area has been slow until the recent appointment of Zhang Yunfan from Perfect World as the new gaming head [3]. - The introduction of prominent gaming streamers to Douyin, such as Zhang Daxian and Xu Xu Baobao, reflects a strategic move to enhance its gaming content and attract a larger audience [3]. Group 3: Historical Context - Han Shangyou's past achievements include the successful launch of Huoshan Live, which quickly surpassed Kuaishou in terms of ARPU, showcasing his capability in driving growth in live streaming [2]. - The relationship between ByteDance and Tencent has historically limited Douyin's gaming content, but recent developments suggest a potential shift in this dynamic as Douyin seeks to strengthen its gaming offerings [2][3].