BOCI reiterated its "Buy" rating on Bilibili Inc. (09626.HK) and lifted its target price to HKD 244 from HKD 233, citing a strong outlook for the company's advertising business and a prudent AI investment strategy.
"The predictable benefits from AI investments will gradually materialize, particularly in the advertising business, cost reduction, and efficiency enhancement," BOCI said in a research report.
The bank forecasts Bilibili's total revenue to grow 7 percent year-over-year in the first quarter of 2026, in line with market expectations. While the mobile gaming business is expected to decline by 12 percent, the advertising segment is projected to surge by 27 percent. BOCI anticipates adjusted net profit will jump 60 percent year-over-year to RMB 582 million, which is 9 percent above market consensus.
The positive analyst report could increase investor confidence in Bilibili, which has focused on a rational and focused approach to AI investment across three key areas in 2026. The new HKD 244 target price implies a potential upside from its current trading levels.
BOCI's upgraded price target reinforces a bullish narrative for Bilibili, centered on its high-growth advertising segment and the long-term profitability benefits of its AI strategy. Investors will be closely watching the company's upcoming first-quarter results to see if the strong profit growth materializes as forecasted.
This article is for informational purposes only and does not constitute investment advice.
