CITIC Securities Lyon: Maintains BILIBILI-W (09626) "Outperform" Rating, "Three Kingdoms: Strategy to Conquer the World" May Drive Gaming Revenue Growth of 80% Annually

CICC Citi released a research report stating that the advertising share of Bilibili-W (09626) in the game, e-commerce platform, and consumer market has further increased. CICC Citi believes that the growth momentum is expected to continue into the second half of the year, but the growth in the second half of the year will depend on its next hot game. The "outperform the market" rating and target price remain unchanged. The report stated that due to strong growth in games and advertising, Bilibili's performance in the fourth quarter of 2024 should remain solid. It is expected that the group's quarterly total revenue will increase by 21% year-on-year to 7.7 billion RMB, with adjusted operating profit remaining at 362 million RMB. With the release of the new game "Three Kingdoms: Strategize to Rule the World", game revenue may increase by 80% annually, as the new storyline and battle mode have increased player engagement.