0635 GMT - Bilibili's potential upside in advertising revenue should offset the softness in mobile games in 1Q, Jefferies analysts Thomas Chong and Zoey Zong say in a research note. Jefferies expects the Chinese video-streaming company's 1Q revenue to grow around 10% on year to CNY5.59 billion. Advertising revenue also maintained a fast growth trend at about 26% on year while mobile games revenue likely fell 11% on year. Bilibili's gross profit margin could improve to around 27% in 1Q from 26% in 4Q, they say. Investors should pay attention to management comments on trends in operating metrics such as daily average users and expectations on upcoming new games and the competitive landscape, they add. Jefferies maintains a buy call on Bilibili and keeps its target at HK$88.85. Shares last at HK$87.50. (sherry.qin@wsj.com)
(END) Dow Jones Newswires
April 17, 2024 02:35 ET (06:35 GMT)
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