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 - Bilibili (BILI.US) experienced significant stock price declines despite reporting strong second-quarter and mid-year performance for 2025, indicating potential market volatility and investor concerns [1][2]. Financial Performance - In the first half of 2025, Bilibili's daily active users (DAUs) reached 108 million, a year-on-year increase of 6%, while monthly active users (MAUs) grew to 365 million, up 8% [2]. - The average usage time per active user increased to 106 minutes, compared to 102 minutes in the previous year [2]. - Monthly paying users reached 31.8 million, reflecting a 10% year-on-year growth [2]. - Revenue for the first half of 2025 grew by 21.6% to 14.34 billion RMB, with a net profit of 210 million RMB, a turnaround from a loss of 1.37 billion RMB in the same period last year [2][3]. - Adjusted net profit for the first half was 920 million RMB, compared to an adjusted net loss of 730 million RMB in the previous year [3]. Quarterly Highlights - For Q2 2025, revenue increased by 19.8% to 7.34 billion RMB, aligning closely with market expectations [3]. - Net profit for Q2 was 220 million RMB, compared to a loss of 610 million RMB in the same quarter last year [3]. - Adjusted net profit for Q2 was 560 million RMB, slightly above the consensus estimate of 520 million RMB, attributed to lower-than-expected sales and R&D expenses [3][4]. Business Segments - Revenue from value-added services in Q2 was 2.84 billion RMB, a 10.6% increase, driven by growth in live streaming and other services [6]. - Advertising revenue reached 2.45 billion RMB, up 20.2%, primarily due to strong growth in performance-based advertising [6]. - Mobile gaming revenue surged by 60.1% to 1.61 billion RMB, largely due to the success of the exclusive game "Three Kingdoms: Strategy of the World" [7]. Future Outlook - Bilibili's management aims to achieve an operating profit margin of 10% by 2025, with a mid-term target of 15%, focusing on optimizing operational leverage and controlling costs [11]. - The company plans to enhance its game pipeline and expand into overseas markets, with several new games in development [11]. - Concerns remain regarding the performance of the game pipeline and e-commerce business, which may impact future stock performance [12].

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]

Core Viewpoint - The report maintains the Non-GAAP net profit forecast for Bilibili (09626, BILI.US) for 2025/2026 unchanged, with adjustments to the target price reflecting potential AI empowerment and new game reserves [1] Company Status - Bilibili held its 2025 Investor Day on July 11 in Shanghai, discussing themes such as gaming, advertising business, commercialization, and AI with investors [2] Gaming and Advertising Business - Gaming: The company focuses on "youth-oriented categories" and "IP operation," continuing micro-innovations and long-term IP operations through gaming and anime/UP master collaborations. Key upcoming projects include the mini-program version of "Three Kingdoms: Strategizing the World" and self-developed games like "Code: Three Kingdoms Ncard" [3][4] - Advertising: The company is confident in exceeding industry growth rates in advertising revenue over the next three years, with expectations for improved ad penetration and conversion efficiency [3] - Diverse Commercialization: In addition to charging, the company is actively exploring various content and rights-based value-added services (VAS) [3] Profitability and Growth Potential - Gaming Revenue: The company anticipates a 20% year-on-year increase in gaming revenue for 2025, with a focus on long-term operations of "Three Kingdoms: Strategizing the World" [4] - Advertising Revenue: The company expects a 15% year-on-year increase in advertising revenue for 2025, with long-term ad load levels potentially reaching 10% and significant improvements in eCPM due to AI [4] - Profitability: The company’s cost and expense growth is expected to remain stable, with revenue growth and structural improvements potentially releasing operational leverage. The gross margin is projected to be around 37% in 2025, with long-term potential to reach 40%-45% [4] BW2025 Event - The BW2025 event, part of the first Shanghai International Animation Month, saw a 30% increase in exhibition area and 350,000 tickets sold, indicating a strong social atmosphere among young people, reflecting Bilibili's quality content and ecosystem [5]