2025投资者日：提升变现能力以支持高质量盈利增长

2025 Investor Day: improving monetization tosupport qualityearnings growth Target PriceUS$26.50Up/Downside23.5%Current PriceUS$21.46 We attended 2025 BiliBili Investor Day. Our key takeawaysinclude: 1) adbusiness sustains strong growth underpinned by the upgrade of commercialinfra, such astheintroduction ofmini program & live streaming ad capabilities,thelaunchof intelligentadplatform BiliBili Bida, andtheimprovement of industrysolutions; 2) game business maintains momentum driven by legacy games, andnew games planned for launch in 2025includingTrickcal RE: VIVEandEscapefrom Duckov.3)Bilicontinues to leverage AI to support its ad monetization andcontent ecosystem, launching several AI tools such as AI ad placement, AI videotranslation, and AIsearchetc. We are upbeat on Bili’s earningsmomentumdriven by its improving monetization andoperating leverage. We maintainSOTP-derived target price of US$26.50 and BUY rating. China Internet Saiyi HE, CFA(852) 3916 1739hesaiyi@cmbi.com.hk Wentao LU, CFAluwentao@cmbi.com.hk Ye TAO, CFAfranktao@cmbi.com.hk Advertising:improving commercial infrastructure supports adbusinessgrowth.Bili highlights several upgrades of its commercial infra:1)Bili launched a close-looped mini program&live streaming adcapabilities,revenue from both surpassed RMB90mn in 1H25;2) Biliintroduced ad intelligent platform BiliBili Bida to improve targeting andmeasurementcapabilities. 127 brands activated the services and advertisedin 1H25; 3)Thecompany also upgraded its industry ad solutions, whichsupportedsolid growth of ad revenue from verticals such as content (+90%YoY) and consumer goods (+30% YoY) in 1H25. Overall, we are upbeat thatBili’s ad business will continueto outpace the sector growth and gain marketsharein 2025,supported by its improving monetization and AIempowerment. Joanna Ma(852) 3761 8838joannama@cmbi.com.hk Stock Data Source: FactSet Games: focus on“youthification”of game genres.Bili’s legacy gametitles maintain solidperformance: 1)Azur Lanecelebrated its 8thanniversarywith over 1mn MAUs and steadilyincreasingpaid users; 2)FGO’srevenuegrew by 31% YoY in 2024 aftereight years ofoperation; 3)San Mouactiveusers reached a peak during theanniversarycelebration in Jun 2025. Onnew gamepipeline: 1)Trickcal RE: VIVE,a meme-infused anime mobilegame, is planned fortheglobal launch in 2H25; 2)Escape from Duckov,aPvE Search/Engage/Extract game, was added by over 200k users to theirwishlist.Looking ahead, Bili will continue to focus on“youthification” ofgame genres,i.e. developing/publishing games thatadaptto the habits oftheyoung generation. AI to empower business growth.On ad monetization front, AI improvedBili’s recommendation algorithms, creative generation and smart placement.AI smart placementaccountedfor c.20% of total ad spending in 2Q25, andBiliexpectsthis percentage to reach c.50% byend-2025. On communityfront, Bili launched several AI tools to support the healthy development ofcontent ecosystem, such as AI video translation, AI search, AI commentanalysis and AI content review. We expect these AI products to drive qualityearnings growth of the company. Source: FactSet Disclosures& Disclaimers Analyst CertificationThe research analyst who is primary responsible for the content of this research report, in whole or in part, certifies thatwith respectto the securities or issuer that the analyst covered in this report: (1) all of the views expressed accurately reflect his or her personal views about the subject securities or issuer; and (2)no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific views expressed by that analyst in this report.Besides, the analyst confirms that neither the analyst nor his/her associates (as defined in the code of conduct issued by The Hong Kong Securities and Futures Commission) (1) have dealt in or traded in the stock(s) covered in this research report within 30 calendar days prior to thedate of issue of this report; (2) willdeal in or trade in the stock(s) covered in this research report 3 business days after the date of issue of this report; (3) serve as an officer of any of the HongKong listed companies covered in this report; and (4) have any financial interests in the Hong Kong listed companies coveredin this report. CMBIGM RatingsBUY : Stock withpotential return of over 15% over next 12 months: Stock with potential return of +15% to-10% over next 12 months: Stock with potential loss of over 10% over next 12 months: Stock is not rated byCMBIGM HOLDSELLNOT RATED :Industry expected to outperform the relevant broad market benchmark over next 12 months:Industry expected to perform in-line with the relevant broad market benchmark over next 12 months:Industry expected to underperform the relevant broad market benchmark over next 12 monthsCMB InternationalGlobal MarketsLimited Address: 45/F, Champion Tower, 3 Garden Road, Hong Kong, Tel: (852) 3900 0888 Fax: (852) 3900 0800CMB International