Bilibili-W (09626) rose nearly 4% in Hong Kong trading, with the stock up 3.67% to HK$172.4 at the time of writing, recording a turnover of HK$141 million. According to a Goldman Sachs research report, the valuation of the mainland China gaming sector currently hovers near the lower end of its five-year historical range. However, Chinese game publishers demonstrated resilience in the first quarter of this year, with combined domestic revenue increasing 13% year-over-year and overseas sales growing 32% annually. As the market enters its peak season and multiple new games are launched, the investment bank expects the sector to maintain strong momentum. Goldman Sachs holds a positive outlook on Bilibili, anticipating that increased advertising budgets for games in the second and third quarters will drive robust advertising revenue performance. The firm also highlighted that the new "Three Kingdoms" game is expected to attract broad user engagement. Bilibili-W is scheduled to report its first-quarter 2026 financial results on May 19. Citigroup forecasts the company's first-quarter revenue will rise 7% year-over-year to RMB 7.5 billion, with non-GAAP operating profit reaching RMB 553 million, both largely in line with market expectations. Advertising revenue is projected to grow 26% year-over-year, with further upside potential supported by the expansion of advertising scenarios, efficiency improvements driven by AI, and increased user purchasing power.
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