On Friday, Bernstein SocGen Group adjusted its outlook on Bilibili (NASDAQ:BILI), a popular online entertainment platform, raising its price target to HK$102 from the previous HK$95. The firm maintained its Market Perform rating on the company, which is listed on both the Hong Kong Stock Exchange and NASDAQ.
The revision follows Bilibili's second-quarter results, which aligned with consensus expectations in terms of revenue and profit. The company reported a 15.5% year-on-year increase in revenue, reaching RMB6.1 billion. A notable contribution to this growth came from the gaming sector, which saw a 13.1% rise, bolstered by the launch of a new Three Kingdoms strategy game in June.
Advertising revenue also experienced a significant uptick, climbing 29.5% year on year to RMB2.0 billion. This increase in diverse revenue streams led to a gross profit of RMB1.8 billion, slightly surpassing both the firm's and the consensus estimates.
The positive financial outcomes extended to Bilibili's non-GAAP operating and net loss figures, which were RMB284 million and RMB271 million, respectively. These results were in line with Bernstein SocGen Group's projections and marginally better than what the broader market anticipated.
The company's ability to maintain performance amidst a competitive digital landscape has been acknowledged by the firm's latest price target adjustment.
InvestingPro Insights
Following Bernstein SocGen Group's updated outlook on Bilibili, it's valuable to note some additional insights provided by InvestingPro. Bilibili holds more cash than debt on its balance sheet, which is a positive sign for the company's financial health. Moreover, the company's shareholder yield is considered high, reflecting its potential attractiveness to investors looking for returns. However, analysts are not expecting Bilibili to be profitable this year, which is an important consideration for those looking at the company's near-term financial prospects.
From a data perspective, Bilibili's market capitalization stands at $6.2 billion USD, and despite the company's growth in revenue, it maintains a negative P/E ratio of -11.04, indicating that it has not reported positive earnings over the last twelve months as of Q2 2024. The revenue growth figures are promising, with a 7.33% increase over the last twelve months and a substantial quarterly growth of 15.51%. However, the company has experienced a 1-month price total return of -12.73%, reflecting recent market volatility.
For those interested in a deeper analysis, InvestingPro has additional InvestingPro Tips on Bilibili, which can be explored for a more comprehensive understanding of the company's performance and outlook.
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