HK Stock Market Move | BILIBILI-W(09626) rose more than 3%. Strong performance in the third quarter of games exceeded expectations. The total revenue of "Three Conspiracies" across all channels may exceed 2 billion.

Shares of BILIBILI-W (09626) rose more than 3%, as of the time of writing, it has increased by 2.62%, trading at 148.8 Hong Kong dollars, with a turnover of 201 million Hong Kong dollars. Bank of America Securities released a research report pointing out that Bilibili's third quarter performance exceeded expectations, driven by strong performance in gaming. The bank believes that there is growth potential in the company's advertising business, as it will open up its ecosystem in e-commerce video and live advertising, and plans to collaborate with e-commerce platforms and brands to attract more advertising budgets. In addition, the bank also noted that profit trends will become the main driving factor of the stock price after achieving a balance between revenue and expenses. The bank believes that the transformation into gaming and advertising business, as well as improving costs, will help achieve a net profit margin of over 10% or an operating profit margin of around 15% in the long term. Shenwan Hongyuan Group pointed out that Bilibili's 24Q3 achieved operating income of 7.3 billion yuan, a year-on-year increase of 26%, showing continuous acceleration for four consecutive quarters, mainly driven by gaming and advertising businesses. After adjustment, net profit attributable to shareholders reached 240 million yuan, corresponding to a profit margin of 3.2%, achieving profitability for the first time, which is in line with market expectations. Among them, "Three Kingdoms: Fate Determined" contributed to strong growth in the gaming business. According to data from DianDian, as of November 17, total iOS revenue for "Three Determinations" has reached nearly 1.2 billion yuan, with estimated total revenue across all channels exceeding 2 billion yuan (the company's gaming revenue in 2023 is 4 billion yuan).