BOCI: Lowers BILIBILI-W (09626) target price to HKD 191, maintains "Buy" rating.

BOCI issued a research report lowering the target price of BILIBILI-W (09626) by 14.7%, from HKD 224 to HKD 191, while also lowering its US stock (BILI.US) target price, maintaining a "Buy" rating on both. The bank expects third-quarter 2026 revenue to grow 7% year-on-year, with adjusted operating profit up 20% year-on-year (adjusted operating margin of 10.0%), and expects mobile games, online advertising, and value-added services revenue to decrease 6%, increase 20%, and increase 5% year-on-year, respectively. The bank believes that the main market focus for 2027 profits will primarily come from the macroeconomic environment, AI investments, and the performance of new games. The bank currently forecasts 2027 adjusted operating profit of RMB 4 billion (up 35% year-on-year), mainly driven by mobile games (up 21% year-on-year), online advertising (up 16% year-on-year), and total operating expenses (up 11% year-on-year) outperforming the market.