CCB International has released a research report, raising the target price for Bilibili-W (09626, BILI.US) by 8% to HK$230.1 from HK$212.8, and by 14% to $29.5 from $25.89, maintaining an "Outperform" rating for both. The firm remains bullish on Bilibili due to its sticky user base, dynamic ecosystem, and significant monetization potential.

CCB International highlighted Bilibili's solid financial and operational performance in Q3. The report anticipates strong market reception for the mobile and console versions of "Duckov" upon release, along with growth potential from other new game launches.

In the near term, clear and high-certainty profit growth momentum is expected to be driven primarily by sustainable advertising revenue growth. This is attributed to AI-driven improvements in ad delivery efficiency, enhanced AIGC creative tools, and expansion into diversified advertiser segments (advertiser count grew 16% YoY, with revenue from AI/auto/digital products/home appliances and decor advertisers rising 90%/35%/60%/60% YoY). These factors have already pushed advertising revenue's share of total revenue to 33% in Q3.

Long-term, the firm believes Bilibili will benefit from its irreplaceable community moat, underpinned by 117 million daily active users, 112 minutes of average daily usage, and a stable 80% 12-month retention rate. Additionally, its self-developed game "Duckov" has surpassed 3 million global sales, validating its R&D capabilities, while IP merchandise growth driven by popular domestic anime content is expected to unlock a second wave of expansion.