Nomura has released a report predicting that Bilibili (BILI, Financial) will see a 25% year-on-year increase in revenue for the third quarter, reaching 7.3 billion RMB, surpassing market expectations by 2%. The company's non-GAAP operating profit is expected to hit 200 million RMB, exceeding market forecasts by 11%.
Driven by strong operational leverage, Bilibili's gross profit margin for the third quarter may rise by 10 percentage points to 35%, slightly above the market prediction of 34.7%. Additionally, Bilibili's new games have shown unexpected resilience and popularity, making the online gaming segment a highlight of the third quarter. Revenue from online gaming is anticipated to grow by 75% year-on-year, accounting for 24% of total revenue, compared to 17% in the same period last year.
Nomura has raised its target price for Bilibili's U.S. stocks from $18 to $24, maintaining a "Buy" rating.
