Bilibili W will announce its third quarter results in the near future. Some institutions have pointed out that the company's revenue meets market expectations and has lowered its target price to HKD 124.
According to the research report of CICC, Bilibili's revenue in the third quarter increased by 0.7% year-on-year to 5.832 billion yuan, which is in line with the widely expected 5.826 billion yuan in the market; Under non general accounting standards, the operating loss is expected to reach 836 million yuan, while the net loss is expected to reach 912 million yuan, with a loss rate of approximately 15.6%, compared to the market's expected loss of 766 million yuan.
Advertising revenue or stable growth is worth paying attention to the subsequent performance of games
CICC pointed out that the video sales model in the third quarter of 2023 will gradually become operational, which may contribute to the increase in advertising revenue. It is expected that the advertising business revenue in the third quarter will increase by 20% to 1.625 billion yuan.
CICC pointed out that the securities firm expects gaming performance to be relatively weak in the third quarter of 2023, with gaming revenue decreasing by 32% to 1.004 billion yuan. Looking ahead to the fourth quarter, "Shine! Youjun Girl" will be publicly available for testing on August 30th. However, considering that the game's client download portal was temporarily closed due to technology upgrades on September 7th and has not yet been launched, it is expected to have a certain impact on the revenue contribution in the fourth quarter. It is recommended to pay attention to the progress of the game's release in the future.
In addition, Bilibili has implemented measures such as integrated marketing, APP version modification, and UP main live streaming sales. For example, the original "Member Purchase" entrance on the APP has been temporarily renamed as "Double 11", and a new "Tmall Double 11" section has been added to directly display Tmall products, and supports clicking to jump to the Tmall page for purchase. CICC pointed out that the company continues to improve its advertising product form and further unleash user spending power. It is recommended to focus on diversified commercial scenarios to expand its potential.
CICC lowered its target price to HKD 124
Considering the gradual recovery of the external advertising environment and the impact of gaming products, CICC lowered its revenue forecast for 2023/2024 by 1.6%/4.3% to 22647/26.862 billion yuan. Taking into account cost control, it adjusted the non GAAP net loss for 2023 from 3.395 billion yuan to 3.582 billion yuan, maintaining the non GAAP net profit forecast unchanged for 2024.
Therefore, CICC lowered its target price for Hong Kong stocks by 27.1% to HK $124.