Â
>>REAL-TIME UPDATES IN THE WIRE. CLICK HERE<<<
Â
Â
CICC cut Bilibili’s target price by 14.3% to $30 and kept the rating at Outperform. Considering the sustainability of the macro environment, CICC also lowered the forecast of Bilibili’s revenue in 2022 and 2023 by 2.7% and 1.4%, respectively, to 22 billion yuan and 30.2 billion yuan, and cut the forecast of its non-GAAP net profit in the two years by 530 million yuan and 70 million yuan to 7.3 billion yuan and 4.5 billion yuan.
Bilibili ‘s second-quarter results lagged behind the CICC forecast, mainly due to pressure on revenue, paired with more-than-estimate R&D and management expense ratio, CICC said in a note. Bilibili reported a revenue of 4.91 billion for the quarter, sliding 9.2% from a year ago and down 2.9% from the previous quarter, and its non-GAAP net loss reached 1.96 billion, compared to a net loss of 1.32 billion yuan in the same period last year.
The company forecast a revenue of 5.6 – 5.8 billion yuan for Q3, lower than CICC’s expectation and market consensus, according to the note.
However, as macro environment improves and the commercial ecological construction continuously strengthen, Bilibili’s revenue is expected to return to the high-speed track and due to cost saving and efficiency enhancement, Bilibili expected the fourth-quarter gross profit margin to pick up to 20% slowly, said the bank.
BofA Securities restated the rating of Bilibili’s H-shares at Buy, with target price slashed from HK$394 to HK$323. The company’s 2022-24 earnings-per-share forecasts were chopped by 4%,17% and15%.
Bilibili posted a mixed set of results for the second quarter of the year and the outlook for the second half, with user growth and engagement topping expectations and on the other hand, profit margin to remain subdued as improvement trailed forecast, the broker said.
The company would still be facing certain challenges in business recovery and profit margin and the broker lowered its the forecast of Bilibili’s live streaming and VAS growth in the second half of the year to below 15% year-on-year from 25%.
Ad recovery will likely fall behind market estimate, with a murky 4Q outlook amid a challenging market environment, and story mode’s ad reversion and adoption rate would take time to magnify. it said
Jefferies maintained Bilibili at Buy rating and slashed H-share target price from HK$$378 to HK$$215 to reflect macro uncertainties.
Bilibili’s revenue guidance median for the third quarter of the year was below consensus, Jefferies said.
The management stressed that the advertising market was dampened by the macro environment, whereas the company would use a multi-scenario strategy, including by unlocking potential with content at the core, said the bank.