HK Stock Market Move | BILIBILI-W (09626) rose nearly 4%, the gaming market is expected to enter its peak season, institutions believe that the company has further potential for growth in advertising revenue.

BILIBILI-W (09626) rose nearly 4%, as of the time of writing, it has risen by 3.67%, reaching 172.4 Hong Kong dollars, with a turnover of 1.41 billion Hong Kong dollars. On the news front, a Goldman Sachs research report pointed out that the valuation of the Chinese mainland gaming sector covered by the bank is close to the lower limit of the past 5 years. However, Chinese mainland game publishers have shown resilience in the first quarter of this year, with domestic revenue increasing by 13% year-on-year and overseas sales increasing by 32% year-on-year. With the market entering the peak season, several new games are being released successively, and the bank expects the market to maintain a strong momentum. Goldman Sachs holds a positive view on BILIBILI, expecting an increase in game advertising budgets in the second and third quarters to drive strong advertising revenue performance, with the new "Three Kingdoms" game expected to attract widespread user participation. BILIBILI-W will announce its first quarter earnings for 2026 on May 19th, with Citigroup expecting the company's first quarter revenue this year to increase by 7% year-on-year to 7.5 billion yuan, and non-GAAP operating profit to be 553 million yuan, both roughly in line with market expectations. It is expected that advertising revenue will increase by 26% year-on-year, with further upside potential, benefiting from the continued expansion of advertising scenes, AI-driven efficiency improvements, and user consumption growth.