0406 GMT - Bilibili could face risks meeting its goal of breaking even in 3Q, HSBC analysts say in a research note. Although the Chinese video platform's move to cut the incentive plan for mid- to top-content creators could lift gross profit margin, improvement of operational expense is more limited, they say. Meanwhile, cutting incentives for content creators and payments to livestreamers could pose long-term risks, as creators could migrate to other platforms, the analysts say. HSBC reckons Bilibili would likely break even in 4Q, and trim its 2024 earnings forecast by 8%. HSBC maintains a hold rating on Bilibili and trims its ADR target price to US$11.30 from US$11.50. ADRs last closed at US$12.75. (sherry.qin@wsj.com)
(END) Dow Jones Newswires
April 25, 2024 00:06 ET (04:06 GMT)
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