BILIBILI(09626) 东方证券·2025-03-04 12:28Investment Rating - The report maintains a "Buy" rating for the company with a target price of 186.3 HKD (171.8 CNY) based on a projected adjusted PS of 2.4x for 2025 [3][4]. Core Insights - The performance of the game "Three Kingdoms: Strategy" Season 6 has exceeded expectations, which is expected to continue driving high growth in gaming revenue. Additionally, improvements in advertising supply-side traffic and user demographics are anticipated to enhance monetization capabilities [3][6]. - The total revenue for Q4 2024 reached 77.3 billion CNY, representing a year-over-year increase of 21.82% and a quarter-over-quarter increase of 5.87%. The growth was primarily driven by advertising and gaming businesses [6][7]. - The company expects revenues for 2024 to be 26.83 billion CNY, with projections of 30.23 billion CNY and 32.44 billion CNY for 2025 and 2026, respectively [3][4]. Financial Summary - The company reported a total revenue of 21,899 million CNY in 2022, with a projected increase to 22,528 million CNY in 2023 and further growth to 26,832 million CNY in 2024 [4][11]. - The gross profit margin is expected to improve from 32.70% in 2024 to 40.06% by 2026, indicating enhanced operational efficiency [4][12]. - The net profit attributable to the parent company is projected to turn positive in 2025, reaching 848 million CNY, with an EPS of 2.01 CNY [4][11]. Revenue Breakdown - Advertising revenue for Q4 2024 was 23.9 billion CNY, up 24% year-over-year, driven by product optimization and increased advertising efficiency [6][7]. - Gaming revenue for Q4 2024 reached 18.0 billion CNY, a significant increase of 79% year-over-year, largely due to the success of "Three Kingdoms: Strategy" [6][7]. - Live streaming and value-added services (VAS) generated 30.8 billion CNY in Q4 2024, reflecting an 8% year-over-year growth [6][7].