CICC: Raise Bilibili's H-share target price to HK $244, maintaining "buy" rating.

China International Bank has released a research report predicting that Bilibili's total revenue for the first quarter of the 2026 fiscal year will increase by 7% year-on-year, in line with market expectations; the adjusted net profit is expected to be approximately 582 million yuan, a 60% increase year-on-year, exceeding market expectations by 9%. The report states that the advertising business remains strong, with a 27% year-on-year increase, while the value-added business is expected to grow by 5%. The bank believes that the company will focus on investing in AI in a rational and cautious manner in 2026, with the expected benefits of AI investments gradually being realized, especially in advertising and cost efficiency. In addition, the gaming business may also bring surprises in the second half of the year, mainly due to the launch of 3 to 4 new games. The bank maintains a "buy" rating for Bilibili and has increased its target price for its US stocks from $30 to $31 and its H shares target price from 233 Hong Kong dollars to 244 Hong Kong dollars, based on the forecasted CAGR of adjusted net profit of 31% for the next 3 years. The company also completed its 200 million US dollar share buyback plan ahead of schedule in April of this year, with the plan originally set to end in November.