Core Viewpoint - The company reported a slight beat in 2Q25 Non-GAAP net profit, driven by lower-than-expected sales and R&D expenses, with revenue growth primarily from advertising and gaming sectors [1][2]. Financial Performance - 2Q25 revenue reached 7.338 billion yuan, a year-on-year increase of 19.8%, aligning with Bloomberg consensus (7.330 billion yuan) and internal expectations (7.321 billion yuan) [1]. - Non-GAAP net profit for 2Q25 was 562 million yuan, slightly above Bloomberg consensus (520 million yuan) and internal expectations (539 million yuan) [1]. - Advertising revenue grew by 20.2% year-on-year to 2.449 billion yuan, with a notable increase in eCPM [1]. - Gaming revenue surged by 60.1% year-on-year to 1.612 billion yuan, although a decline of 16-17% is expected in 2H25 due to high base effects [1][2]. Development Trends - The company is advised to focus on new game projects such as the繁中版 of "三谋", "代号：三国Ncard", "嘟嘟脸恶作剧", and self-developed "逃离鸭科夫", with revenue contributions anticipated from 4Q25 to 2026 [2]. - Value-added services revenue increased by 10.6% year-on-year to 2.837 billion yuan [2]. Profitability and Cost Management - 2Q25 gross margin improved by 0.2 percentage points to 36.5%, attributed to strong growth in performance advertising revenue and operational leverage [2]. - Sales and management expenses slightly decreased, while R&D expenses saw a modest increase, indicating cost control [2]. - The company expects gross margin to gradually rise to 37% by 4Q25, with long-term potential reaching 40-45% [2]. User Engagement - 2Q25 MAU, DAU, and average daily usage time all showed year-on-year growth, with DAU reaching 109 million [3]. - The company maintains a strong community attribute and user stickiness, with advertising budgets shifting towards core platforms [3]. Earnings Forecast and Valuation - The company maintains its Non-GAAP net profit forecasts for 2025 and 2026, with current trading multiples at 33/25 times 2025/2026 Non-GAAP P/E [3]. - The target price for Hong Kong stocks has been raised by 5.7% to 204 HKD, and for US stocks by 8.0% to 27 USD, indicating an upside potential of 3.7%/6.7% [3].

Core Viewpoint - The report from CICC maintains the Non-GAAP net profit forecast for Bilibili-W (09626) for 2025/2026, with target prices raised by 5.7% to HKD 204 and by 8.0% to USD 27, reflecting a positive outlook based on user ecosystem and AI empowerment [1] Financial Performance - In Q2 2025, the company's revenue reached RMB 7.338 billion, a year-on-year increase of 19.8%, aligning closely with institutional expectations [2] - The Non-GAAP net profit for Q2 2025 was RMB 562 million, slightly exceeding institutional consensus of RMB 520 million, attributed to lower-than-expected sales and R&D expenses [2] Advertising and Gaming Revenue - Advertising revenue in Q2 2025 grew by 20.2% to RMB 2.449 billion, with significant improvement in eCPM, and gaming remains the largest advertising sector [3] - Gaming revenue surged by 60.1% to RMB 1.612 billion in Q2 2025, with stable DAU performance for "Three Kingdoms: Strategy of the World" and potential contributions from upcoming game releases expected in Q4 2025 to 2026 [3] Profitability and Cost Management - The gross margin in Q2 2025 increased by 0.2 percentage points to 36.5%, driven by strong growth in performance advertising revenue and operational leverage [4] - The company anticipates a gradual increase in gross margin, potentially reaching 37% by Q4 2025, with long-term targets of 40% to 45% [4] User Engagement and Community Growth - In Q2 2025, the company reported year-on-year growth in MAU, DAU, and average daily usage time, with DAU reaching 109 million [5] - The company emphasizes its strong community attributes and user stickiness, with a focus on enhancing commercial capabilities and the potential for growth in advertising, gaming, and charging plans [5]

Core Viewpoint - The report from CICC maintains the Non-GAAP net profit forecast for Bilibili-W (09626) for 2025/2026, with target prices raised by 5.7% to HKD 204 and by 8.0% to USD 27, reflecting an upward potential of 3.7% and 6.7% respectively [1] Financial Performance - In Q2 2025, the company's revenue reached RMB 7.338 billion, a year-on-year increase of 19.8%, aligning closely with institutional expectations [2] - The Non-GAAP net profit for Q2 2025 was RMB 562 million, slightly exceeding institutional consensus of RMB 520 million, attributed to lower-than-expected sales and R&D expenses [2] Advertising and Gaming Revenue - Advertising revenue in Q2 2025 grew by 20.2% to RMB 2.449 billion, with significant improvement in eCPM and gaming remaining the largest advertising sector [3] - Gaming revenue surged by 60.1% to RMB 1.612 billion, with stable DAU performance for "Three Kingdoms: Strategy of the World" and potential contributions from upcoming games expected in Q4 2025 to 2026 [3] Profitability and Cost Management - The gross margin in Q2 2025 increased by 0.2 percentage points to 36.5%, driven by strong growth in performance advertising revenue and operational leverage [4] - The company anticipates a gradual increase in gross margin to 37% by Q4 2025, with long-term potential reaching 40%-45%, supported by stable costs and expenses [4] User Engagement and Community Growth - In Q2 2025, the company reported year-on-year growth in MAU, DAU, and average daily usage time, with DAU reaching 109 million [5] - The company emphasizes its strong community attributes and user stickiness, with a focus on enhancing commercial capabilities and the development potential of advertising, gaming, and charging plans [5]