Goldman Sachs covered BILIBILI-W (09626.HK) +6.000 (+5.644%) Short selling $84.46M; Ratio 18.391% (BILI.US) in its report. Its 1Q24 results were in line. The adjusted net loss per ADS beat, on the ride of lower cost of goods sold and higher interest income.
Looking ahead to 2Q24, the company's management provided a positive outlook for the advertising business, citing healthy and sustainable growth drivers, with a return to positive YoY growth in the gaming business. The broker reaffirmed its goal of achieving break-even in 3Q24 on a non-GAAP OP level.
The report said the company's shares have sagged 12% after the release of the quarterly results, perhaps because the market had higher expectations for the quarterly results. The company's shares have soared 36% in the past month, while the KraneShares Trust KraneShares CSI China Internet ETF (KWEB.US) has spiked 12% in the same period.
Goldman Sachs raised its revenue forecasts for 2024-2026 by 2%-3%, reflecting growth in advertising revenue and a better recovery in its gaming business. At 32x/16x 2025E/2026E P/Es, the broker viewed the stock as fairly valued. The broker considered the valuation to be reasonable and rated the company Neutral. The TP on the H shares was added from $107 to $115.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-05-27 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)
