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<Research>CMS: Bilibili (BILI.US) Maintains Trend of Continuously Reducing Losses
Recommend 14 Positive 24 Negative 11 |
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China Merchants Securities issued a research report, expecting revenue of Bilibili (BILI.US) (09626.HK) to grow by 10% YoY in 1Q24, with an adjusted operating profit margin of -10.4%, a loss similar to that of 4Q23, mainly because 1Q was a low season and the release of operating leverage was not obvious. Nevertheless, the broker still saw significant improvement in loss margin on a YoY basis. CMS expected Bilibili to move steadily towards profitability this year, with further opportunities for infrastructure cost efficiencies and scale of revenue growth. The broker predicted slower growth in DAU and MAU as the company is more prudent in its expenses amid the continued trend to reduce losses. The broker forecasted that the advertisement revenue of Bilibili will increase by 29% YoY in 1Q. In addition, following the successful cooperation with Alibaba (BABA.US) (09988.HK) and JD.com (JD.US) (09618.HK), more e-commerce platforms partnered with Bilibili to reach the younger generation, such as Vipshop (VIPS US). On the value-added services front, the broker expected revenue to grow 17% YoY in 1Q. The broker forecasted Bilibili's non-GAAP net profit to turn positive in 3Q and reach a small profit in 4Q. The broker also expected the group's revenue to reach RMB25.5 billion in FY24, a 13% YoY growth, with a non-GAAP net loss of RMB482 million this year and a non-GAAP net profit of RMB716 million next year. CMS maintained its target price of HK$86.97 and an Overweight rating on BILIBILI-W (09626.HK), the company's H-share. AAStocks Financial News |
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