The Zhitong Finance App learned that Zheshang Securities released a research report stating that it maintains the Bilibili-W (09626) “buy” rating, and that the overall Q4 performance is expected to be in line with expectations. The estimated revenue for 2022-24 was $219./284/35.2 billion, with a target price of HK$239. Looking ahead to 2023, the bank believes that Station B's performance is mainly driven by revenue & gross margin elasticity brought about by the recovery in advertising demand and the benefits brought about by cost reduction and efficiency.

The bank expects the company's Q4 advertising business revenue of 1.6 billion dollars, which is basically in line with expectations. The year-on-year growth slowdown is mainly due to the high base of the same period last year and the continued impact of the epidemic in the fourth quarter, and advertiser demand is still weak. Looking ahead to this year, as demand in the overall advertising market recovers and the incremental advertising space contributed by the Story model, it is believed that Station B's advertising business is expected to achieve greater growth flexibility.

The report observes that the consumer and service sector has clearly recovered since this year. According to data from the Bureau of Statistics, the manufacturing PMI index for January was 50.1%, and the service sector business activity index was 54%. Value-added tax invoice data from the State Administration of Taxation shows that during the Spring Festival holiday this year, the sales revenue of consumer related industries across the country increased 12.2% over the Spring Festival in '22. At the same time, the game buying market performed well during the Spring Festival. According to DataEye data, the total amount of material before and after the Spring Festival increased by about 25%-30% year-on-year. It is expected that there will be a rebound in advertisements in categories such as consumption and games on the 23Q1B site.