CICC: Raises Bilibili H-Share Target Price to HK$220, Increases Profit Forecast for this year and next year

The report issued by CICC pointed out that Bilibili's third quarter revenue increased by 5% year-on-year to 7.69 billion yuan, exceeding the bank's expectations of 7.61 billion yuan; Non-GAAP net profit reached 787 million yuan, surpassing the bank's expectations of 563 million yuan, mainly due to the rapid growth of advertising revenue and better-than-expected gross profit margin performance. The bank noted that the third-quarter advertising business growth momentum of Bilibili was strong, profit margins improved, and advertising revenue growth significantly increased gross profit margins. In addition, CICC observed that the group's new game product line is rich, and pays attention to the launch timing and growth potential of new games; the company also maintains high-quality content and community atmosphere to promote a healthy commercial cycle. Based on the trend of gross profit margin improvement, CICC raised Bilibili's net profit forecast for 2025 and 2026 by 7.8% and 2.3% respectively, to 2.44 billion and 3.06 billion yuan; the target prices for US and H shares were raised by 7.4% and 7.8% respectively, to $29 and HK$220, maintaining an "outperform" rating.