Broker Name: China Galaxy International Securities (Hong Kong) Co., Limited

Date of Report: March 6, 2026

Excerpt from China Galaxy International Securities (Hong Kong) Co., Limited report.

• Bilibili reported solid 4Q25 results, with revenue up 8% year-on-year to RMB8.32bn, driven by strong advertising growth, and non-GAAP net profit surged 94.9% year-on-year to RMB881m, supported by disciplined cost control and improved margins.
• Bilibili plans to increase AI investment by RMB500m-1,000m in FY26F, focusing on advertising algorithms, content understanding, and AIGC creator tools to capture AI-driven opportunities, with AI already improving ad efficiency and conversion rates.
• Total revenue is expected to grow 5.9% in FY26F, with adjusted net profit projected to rise 11.5% as Bilibili continues to enhance margins through better revenue mix and operating leverage.
• Gaming revenue remains under pressure short term due to lack of new launches, but two new games are expected by mid-2026, with a return to year-on-year growth in 2H26F; VAS and advertising segments are expected to show steady growth.
• DCF-based target price revised slightly down to HK\$254 due to higher AI-related investment; the broker reiterates an Add rating, citing margin improvement potential and ongoing user engagement growth.
• Risks include macroeconomic weakness and higher operating expenses potentially affecting margins; upside catalysts are stronger-than-expected game/ad revenue and margin expansion.
• Bilibili continues to show strong user engagement, with 4Q25 daily active users up 10% year-on-year to 113 million and daily average usage time up 8% to 107 minutes.
• Financial projections show steady revenue and profit growth through FY28F, with improving operating metrics and strong cash position supporting ongoing investment and expansion.

Report Summary

• Bilibili delivered robust 4Q25 results, driven by advertisement growth and cost control, and is increasing AI investments to strengthen its platform and monetization capabilities in FY26F.
• The broker reiterates an Add rating with a target price of HK\$254, expecting continued revenue and profit growth supported by strong user engagement and AI-driven improvements, but notes investment risks from macro conditions and expenses.

above is an excerpt from a report by China Galaxy International Securities (Hong Kong) Co., Limited. Clients of China Galaxy International Securities (Hong Kong) Co., Limited can be the first to access the full report from the China Galaxy International website : https://www.chinastock.com.hk