Glonghui, May 27 | Goldman Sachs released a report indicating that Bilibili's first-quarter results were in line with expectations, benefiting from lower sales costs and higher interest income. After adjustments, the net loss per ADS was better than expected. Looking ahead to the second quarter of this year, management provided a positive outlook on the advertising business, indicating that the growth momentum was healthy and sustainable, that the game business returned to positive year-on-year growth, and reaffirmed the goal of reaching balance of income and expenditure at the non-GAAP level in the third quarter of this year. Since the company's operations are slightly superior to earlier guidelines, the bank believes that the continued implementation of advertising technology upgrades, stabilizing the game business and improving gross margin will be the focus of attention in the future. The bank raised its 2024-2026 revenue forecast by 2% to 3% to reflect an increase in advertising revenue and a better recovery in the game business, and increased its net profit margin forecast by 1, 0.7 and 0.6 percentage points for each year, respectively. The current valuation is equivalent to 32 times and 16 times the projected price-earnings ratio for the next two years, respectively. The bank believes it is reasonable. The rating is “neutral”. Based on the cash flow discount rate, the target price for H shares has increased from HK$107 to HK$115.