UBS Group released a research report indicating that the new game "Three Kingdoms: Reign of Destiny" from bilibili (09626.HK) (BILI.US) performed very well after its launch, maintaining the third place in iOS platform total revenue ranking for most of the first week, which greatly exceeded market expectations. It is predicted that the game's daily revenue can reach 30 to 50 million yuan RMB, and monthly revenue is expected to exceed 1 billion yuan RMB according to this trend.

UBS Group reiterates the "buy" rating for bilibili, and raises the target price for its US stocks to 24 USD (originally 18 USD). It is predicted that the new game will have a significant promotion for its gaming business, and the profit margin of the new game is estimated to be between 35% and 40%. Currently, bilibili's net loss for 2024 is expected to be narrowed down to 384 million yuan RMB, down by 24%, and the loss per share is adjusted from 1.22 yuan RMB to 0.92 yuan RMB. The earnings per share forecast for 2025 and 2026 have been increased by 25% and 15%, respectively.

The bank also believes that Alibaba's (09988.HK) (BABA.US) Lingxi Interactive Entertainment's "Three Kingdoms Strategy Edition" and NetEase's (09999.HK) (NTES.US) "Land of Glory" will be good references, and it is expected that they will still generate 7 billion and 2 billion yuan RMB respectively in their fifth and ninth year after launch in 2023. It is believed that "Three Kingdoms: Reign of Destiny" can also bring significant incremental revenue.