CICC: Maintaining Bilibili-W (09626) outperforming the industry rating target price of HK$194

The Zhitong Finance App learned that CICC released a research report stating that it will maintain Bilibili-W (09626, BILI.US)'s profit forecast for 26/27. The current price corresponds to 17.4/15.4 times 26/27 non-GAAP P/E Hong Kong stocks and 17.3/15.4 times US stocks. Maintaining an outperforming industry rating and target price of HK$194/25, corresponding to 24/22 times 26/27 non-GAAP P/E for Hong Kong stocks and 24/22 times 26/27 non-GAAP P/E for US stocks, with 39% upside compared to current Hong Kong stocks and 40% of US stocks.

CICC's main views are as follows:

The content community is scarce in the industrial chain, and advertising commercialization efficiency is expected to improve

Community: The company mentioned that in the AI era, the essential values of consensual content, social interaction between people, trust, and identity ownership are prominent. Advertising: The underlying assets of corporate advertising commercialization are traffic, community mentality, and content commerce flywheels. In the future, the company plans to further cultivate search, broadcast pages, and large screen scenarios. For AI Agents, the company plans to achieve breakthroughs in in-depth content understanding, AI video material generation, and iterative algorithms for intelligent distribution and matching. The bank believes that in the AI era, companies are more scarce as high-quality content community platforms, and commercialization of corporate advertising has potential for development in terms of traffic, scenario exploration, and distribution efficiency.

Game products are well-stocked, self-developed or have made breakthroughs

The game strategy is to expand more new categories on racetracks that young people like, self-developed+agents with a stable long-term supply of products, and launch multi-terminal+global products. In the future, it is planned to add at least 2 leading products with long-term operation. The reserve includes “Let's shine! “Lumi” (iOS is expected to launch 2026/10/1), “Three Kingdoms: Wang Daotian” (iOS is expected to launch 2026/11/19), “Three Kingdoms: 100 Generals” (continuous optimization), “Three Kingdoms: Fire and Phoenix Liaoyuan” (strategic chess), “Fierce Battle: Big Hero” (battle cards), “Escape from Duck Cove” mobile game, etc., and follow the progress of the new game launch.

Investors are concerned about: AI investment and its impact on business, product logic, gaming and charging business, overseas travel, etc. In terms of the new direction, the company mentioned that the main investment direction in the future is AI. The company believes that AI will bring about changes in productivity and will not bring about changes in relationships. The core of Station B is “relationship operation”. AI is expected to help improve Station B's recommendation algorithm. At the same time, the company still pays attention to commercial ROI indicators when investing. The company believes that the number of self-developed games in the game business may slowly increase, and overall projects are carefully set up and biased towards quality.

Risk warning: The growth rate of the advertising and game business is lower than expected, competition is intensifying, and costs are exceeding expectations.