CMB International reports that Bilibili (BILI, Financial) saw a 26% year-over-year increase in total revenue for Q3, exceeding both its own and market expectations by 3% and 2%, respectively. The adjusted net profit reached RMB 236 million, surpassing the bank's forecast of RMB 195 million and the market's estimate of RMB 217 million.
The strong performance can be attributed to the success of the new game "Three Strategies" and effective cost optimization measures. CMB International anticipates a 21% year-over-year increase in total revenue for Bilibili in Q4, with mobile games, advertising, and value-added services expected to grow by 78%, 24%, and 5% respectively. The adjusted net profit margin is projected to expand from 3.2% to 5.3%.
Furthermore, CMB International has raised its revenue forecasts for Bilibili from 2024 to 2026 by 1% to 5% and increased its U.S. stock price target from $20.5 to $22, maintaining a "buy" rating.
