Goldman Sachs Optimistic About Bilibili's Future Growth Potential

　　Goldman Sachs points out in its latest report that Bilibili (09626) is adjusting its strategy to focus on higher-margin advertising and a stable, game-driven model.

　　Image source: HK01

　　The company is leveraging the advantages of game life cycles, faster advertising growth compared to peers, and excellent business combinations and cost control. Goldman Sachs predicts that Bilibili will achieve a net profit margin of 10-15% by 2026, and expects market consensus to be revised upwards in the next 6-12 months. Consequently, the rating has been upgraded from “Neutral” to “Buy,” with a target price set at HKD 176.

　　Additionally, Goldman Sachs anticipates that the new game “Three Kingdoms: Strategizing the World” will generate revenue of 5-6 billion RMB in its first year, with a competitive cycle lasting at least three years. This expectation has driven the projected growth of earnings per share by over 60% in the next two years.

　　Notably, Bilibili has excelled in optimizing its business mix, strictly controlling game development expenses and user acquisition costs. Based on this, Goldman Sachs expects the companys operating profit margins to reach 7% and 12% in 2025 and 2026, respectively.