Goldman Sachs Forecasts Over 60% Q1 Net Profit Growth for BILIBILI-W (09626), Reiterates Buy Rating on Resilient Performance

Stock News15:33

According to a research report from Goldman Sachs, BILIBILI-W (09626) has demonstrated strong resilience in its stock performance relative to the Hang Seng Tech Index this year. The firm expects this outperformance to continue, driven by sustained rapid growth in its advertising business, an acceleration in its gaming segment starting mid-year, and potential for margin expansion given manageable risks associated with AI investments. Goldman Sachs reiterated its "Buy" rating, maintaining a Hong Kong stock target price of HKD 252 for BILIBILI-W and a US stock target price of USD 32.3 for Bilibili Inc. (BILI.US).

For the first quarter, the bank projects a 7% year-over-year increase in revenue, with advertising revenue growing by 26%. The net profit margin is expected to reach 8%, with net profit rising by more than 60% compared to the same period last year. Goldman Sachs views Bilibili as a resilient player within China's gaming and entertainment sectors, largely insulated from disruptions caused by AI technology or competitive pressure from ByteDance. The firm anticipates that Bilibili can achieve a compound annual growth rate of 30% in earnings per share from 2025 to 2028.

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