Bilibili (BILI, Financial), a prominent Chinese online video platform, has its target price reaffirmed at $26 and HKD 202 by CMB International, maintaining a "buy" rating. The company is leveraging AI to revamp its advertising algorithms, enhance material generation, and optimize intelligent ad placements to improve commercialization efficiency. Bilibili is also making significant strides in multi-screen and multi-scenario penetration, boosting ad revenue in consumer goods and gaming sectors by upgrading its industrial solutions.
In the gaming domain, Bilibili focuses on long-term operations of core IPs while developing new games aimed at younger audiences. The game "Sanmao" hit a new daily active user high, contributing stable PC revenue and boosting profit margins. "FGO" is projected to see a 31% increase in revenue in 2024. Upcoming game releases include "Dudu Face Prank," "Escape from Duckov," and the traditional Chinese, Japanese, and Korean versions of "Sanmao," along with the casual card game "Three Kingdoms: Ncard."
CMB International is optimistic about Bilibili's ongoing scenario expansion and product/technology upgrades, expecting these advancements to enhance commercialization efficiency, optimize gross margins, and boost profitability.
