BILIBILI-哔哩哔哩：2季度业绩预览：《三谋》拉动游戏收入加速增长

Investment Rating - The report maintains a "Buy" rating for the company, with a target price raised to $20.00 from the previous$ 17.00, indicating a potential upside of 19.7% from the current price of $16.71 [1][3][9]. Core Insights - The report slightly raises the revenue forecast for Q2 2024 by 1% to RMB 6.135 billion, reflecting a year-on-year growth of 16%, primarily driven by new game releases exceeding expectations [2][3]. - The performance of the game "Three Kingdoms" has been strong, leading to an upward revision of the annual game revenue forecast to RMB 54 billion for 2024 and RMB 67 billion for 2025, with expected growth rates of 34% and 23% respectively [2][3]. - The company is focusing on enhancing its advertising capabilities and expanding its e-commerce initiatives, which are expected to contribute positively to revenue growth [2][3]. Financial Summary - The company reported revenues of RMB 21.899 billion in 2022, with projections of RMB 22.528 billion in 2023, RMB 26.585 billion in 2024, and RMB 30.207 billion in 2025, indicating a growth trajectory [4][10]. - The net loss is expected to narrow from RMB 6.692 billion in 2022 to RMB 3.425 billion in 2023, and further to RMB 478 million in 2024, with a projected return to profitability in 2025 [4][10]. - The gross margin is anticipated to improve from 17.6% in 2022 to 30.8% in 2024, reflecting operational efficiencies and increased revenue from advertising [10][11]. Revenue Breakdown - The revenue from mobile games is projected to grow from RMB 4.021 billion in 2023 to RMB 5.405 billion in 2024, while value-added services (VAS) and advertising revenues are also expected to see significant increases [7][10]. - The report highlights that advertising revenue is expected to grow by 26% year-on-year in Q2 2024, driven by improved ad distribution strategies and product enhancements [2][7]. Market Position - The company is positioned favorably within the entertainment content sector, with a market capitalization of approximately$ 5.37 billion and a 52-week price range between $8.94 and$ 19.07 [5][9]. - The report emphasizes the potential for further growth in the gaming and advertising sectors, particularly with the upcoming launch of new games and enhancements in advertising technology [2][3].