Yamato: Upgrades Bilibili target price to HK$240, raises earnings forecast for this year and next

According to a report released by Nomura, Bilibili's adjusted profit for the first quarter exceeded market expectations by 30%, mainly due to operating expenses being lower than expected. This marks the third consecutive quarter of achieving positive earnings. Gross profit margin expanded to 36.3%, an increase of 8 percentage points compared to the previous year, reflecting a favorable shift in revenue mix towards higher profit margin sectors. Management emphasized the continual improvement of monetization efficiency and remaining focused on profitable and sustainable growth. Based on Bilibili's clear prospects for long-term profitability, Nomura has raised its earnings forecasts for 2025 to 2026 by 9% to 14%, reiterating a "buy" rating with a target price raised from 230 Hong Kong dollars to 240 Hong Kong dollars.