HK Stock Market Move | BILIBILI-W (09626) rose more than 5% with a year-on-year increase of over 60% in adjusted net profit for the first quarter, with continued high growth in advertising revenue.

BILIBILI-W (09626) rose over 5%, as of the time of writing, it increased by 5.03% to HK$150.3, with a trading volume of HK$957 million. On the news front, recently, BILIBILI-W disclosed its first-quarter performance for the year 2026. Guosen pointed out that the company's revenue in the first quarter of 2026 has steadily increased, and profitability continues to improve. In this quarter, the operating income reached 7.472 billion yuan, a year-on-year increase of 7%; the gross profit margin was 37.1%, an increase of 0.8 percentage points year-on-year, continuing to improve for 15 consecutive quarters; the adjusted net profit was 585 million yuan, a year-on-year increase of 62%, with an adjusted net profit margin of 7.8%. The operating cash flow is healthy, with a net cash of approximately 14.6 billion yuan. In terms of business, advertising revenue increased by 30% year-on-year, with double-digit growth for 13 consecutive quarters, becoming the core growth engine, with AI advertising budget increasing by 170% year-on-year. China Great Wall stated that BILIBILI-W continues to optimize its advertising algorithm through AI technology, enhancing insight into user interests and long-term behavioral patterns, significantly improving the matching between users and advertisements. The CTCVR of performance advertising in 26Q1 increased by 25% year-on-year. The AIGC tool is also simplifying the advertising creative production process, helping advertisers connect with users with materials that are more in line with the community's tone, driving higher click-through rates. The bank believes that based on the expansion of traffic plates, diversified new scenarios, and continuous efficiency improvement, the company's advertising business is expected to maintain strong growth.