• Earlier this week, Bilibili announced a new partnership with CMGE to co-develop an animated series based on the well-known "Chinese Paladin: Sword and Fairy I" IP, building on their prior collaboration for an earlier installment in the franchise.
• This initiative signals Bilibili's continued interest in broadening its original Chinese-made content offerings, potentially strengthening its brand position and increasing user engagement in the competitive online entertainment sector.
• We'll now explore how this new content partnership with CMGE may influence Bilibili's growth outlook and investment case.

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Bilibili Investment Narrative Recap

To be a shareholder in Bilibili, you generally need to believe that its investments in original content and interactive experiences will drive sustainable top-line growth and ongoing user engagement. While the new CMGE partnership adds to Bilibili's expanding content ecosystem, it does not fundamentally change the most pressing risk facing the company: the need for consistent, above-industry revenue growth to justify the current valuation multiple. Similarly, any influence on short-term catalysts such as advertising momentum or the success of new game launches is likely incremental rather than material for the near term.

The company’s recent announcement of a completed share buyback, 839,167 shares for US$16.36 million, stands out, especially as the business remains unprofitable. This move supports shareholder value but also spotlights the ongoing challenge of balancing investment in growth initiatives, like the CMGE collaboration, with progress toward profitability, a milestone closely watched by market participants.

However, even as Bilibili’s content pipeline grows, it’s important for investors to keep an eye on the risk of...

Read the full narrative on Bilibili (it's free!)

Bilibili's outlook anticipates CN¥37.8 billion in revenue and CN¥3.1 billion in earnings by 2028. This scenario is based on a projected annual revenue growth rate of 10.3% and an earnings increase of CN¥3.7 billion from the current earnings of CN¥-607.4 million.

Uncover how Bilibili's forecasts yield a $25.83 fair value, a 3% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members place Bilibili’s fair value anywhere from US$11 to US$75.11, drawing on four distinct forecasts. While optimism surrounds content-driven growth, the company’s need to accelerate revenue is a key consideration for anyone weighing different viewpoints.

Explore 4 other fair value estimates on Bilibili - why the stock might be worth over 2x more than the current price!

Build Your Own Bilibili Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Bilibili research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Bilibili research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Bilibili's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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