Key Takeaways:
- Great Wall Securities maintained Buy on Bilibili after Q1 earnings beat
- Adjusted net profit surged 62% to 585 million yuan on ad revenue growth
- AI-driven ad optimization and new game pipeline support long-term outlook
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Great Wall Securities keeps Bilibili Buy rating on 62% profit jump
Great Wall Securities maintained its Buy rating on Bilibili Inc. (09626.HK) after the video platform reported first-quarter adjusted net profit of 585 million yuan ($81 million), a 62% surge from a year earlier that beat expectations.
"The company's advertising business is benefiting from AI-powered efficiency tools, with revenue in that segment growing 29.6% year-over-year," the brokerage said in a note Wednesday. Great Wall Securities did not disclose a price target or the name of the analyst who authored the report.
Bilibili posted total revenue of 7.47 billion yuan for the quarter ended March 31, up 6.7% from a year earlier. Daily and monthly active users both rose during the period, the company said, without disclosing specific figures. The advertising segment was the standout performer, with growth nearly five times the pace of overall revenue.
The brokerage projects adjusted net profit of 3 billion yuan for the full year 2026, rising to 4.06 billion yuan in 2027 and 4.71 billion yuan in 2028. At current levels, those estimates imply price-to-earnings multiples of 16.9 times, 12.5 times and 10.7 times, respectively. Great Wall Securities noted that a strong pipeline of new games could drive future growth, though near-term gaming revenue faces a high base of comparison from the hit title "Three Kingdoms" strategy game.
The maintained rating puts Great Wall Securities in line with the consensus view. Bilibili has drawn Buy-equivalent ratings from most of the 30-plus analysts covering the stock, according to data compiled by Bloomberg. The company's shift toward profitability — it posted its first full-year adjusted net profit in 2025 — has been a key catalyst for the bullish calls.
For holders, the maintained rating signals confidence that Bilibili's advertising momentum and AI investments can sustain earnings growth. Investors will watch the upcoming 618 shopping festival for signs of continued ad spending momentum.
This article is for informational purposes only and does not constitute investment advice.
