HK Stock Market Move | BILIBILI-W (09626) rose more than 4%, institutions predict that the second half of the year will expand the overseas market of "Three Kingdoms" and further expand the monetization potential.

BILIBILI-W (09626) rose by over 4% during trading hours, as of the time of publication, it has increased by 4.32% to 171.3 Hong Kong dollars, with a trading volume of 640 million Hong Kong dollars. Deutsche Bank has issued a research report stating that it maintains a "buy" rating for BILIBILI-W and has raised the target price from the original 188 Hong Kong dollars to 220 Hong Kong dollars, while maintaining the forecasts for the fiscal years 2025 and 2026 largely unchanged. The bank expects the game "Sanqiu" to expand into overseas markets in the second half of this year, further increasing its monetization potential. The bank expects advertising revenue in 2025 to increase by 20% year-on-year, with hand games, e-commerce, digital products and home appliances, internet services, and the automotive industry expected to be the main verticals for Bilibili's advertising business. The bank also mentioned that the company's performance in the fourth quarter of 2024 met expectations, with stable performance in the gaming and advertising businesses, and profit margins expected to continue to improve. With the strong performance of the flagship hand game "Sanqiu: Strategizing the World" and the continuous expansion of the advertising business, the momentum of the two businesses is expected to be sustainable. The bank also believes that the contribution of high-margin business and the operating leverage will continue to improve the group's gross margin.