Bank of China International: Raises Bilibili H shares target price to 235 Hong Kong dollars, expects second quarter gross profit margin and adjusted operating profit margin to hit a record high.
China International released a research report, predicting that Bilibili's second-quarter revenue will increase by 21% year-on-year, mainly driven by a 69% annual growth in online games and a 20% increase in online advertising revenue. It is expected that the gross profit margin and adjusted operating profit margin in the second quarter will reach new highs, reaching 37.1% and 8.1% respectively, both exceeding market expectations. The bank believes that Bilibili's flagship game "Three Kingdoms: Strategy for the Land" is performing solidly across various platforms and markets, the growth momentum of online advertising business is sustainable, the content ecosystem maintains high quality, and the company accelerates the application of AI to further enrich value-added service monetization channels for users, which will help support long-term revenue and profit healthy growth. China International maintains its "buy" rating, with the H-share target price raised to HK$235 and the U.S.-share target price raised to $30.
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