Lyon: Reiterates Bilibili-W (09626) “Outperforms the Market” and maintains strong growth in advertising revenue

The Zhitong Finance App learned that Lyon released a research report stating that it reaffirmed the Bilibili W (09626) “outperforms the market” rating, downgraded the company's adjusted net profit forecast by 5% and 8% for 2026 and 27, and lowered the target price of Bili.US (BILI.US) US stocks from $29.1 to $22.5.

Lyon pointed out that Bilibili-W's second-quarter results were in line with expectations. Total revenue rose 8.2% year on year, and adjusted EBIT increased by about 21%; advertising revenue maintained strong growth, up 28% year on year; however, mobile game business performance continued to weaken, falling 14% year on year. Additionally, management maintained capital expenditure related to artificial intelligence of RMB 1 billion this year.

Lyon expects Bilibili-W to continue a similar trend in the third quarter. Among them, advertising revenue is expected to increase by 24% year over year, while the mobile game business is expected to drop 6% year over year. As for the fourth quarter, mobile game revenue is expected to return to positive growth with the launch of two new games, but ads will face a higher base. The bank's total revenue for the third quarter and fourth quarter is expected to increase by about 9% and 10% year-on-year, respectively. The bank pointed out that although the company's strict control of sales and marketing expenses will drive profits to continue to rise, investment in artificial intelligence is still a risk.