In a research report, Daiwa pointed out that due to the excellent performance of 'Three Kingdoms: Strategy of the Mighty', the expected gaming revenue growth for Bilibili (09626.HK) this year has been raised to 6%. Although the new game will drive the stock price in the short term, the game depends on long-term operation, and the bank remains conservative.

The bank pointed out that the company's gaming business still maintains an 'all in' strategy with a long-term operating goal. Within its five-year plan, it aims to launch at least two block order games and is currently concentrating its research and development resources on a self-developed game. In addition to 'Three Kingdoms: Strategy of the Mighty', it is estimated that the company will distribute a mobile game based on a famous Japanese anime globally this year, and also plans to explore the overseas release of 'Three Kingdoms: Strategy of the Mighty' in 2025. The company also mentioned that it will launch more advertising products and solutions in the second half of the year.

Daiwa has raised the company's revenue forecast for the years 2024 to 2026 by 0.6% to 1.1%, mainly reflecting the stronger-than-expected gaming performance, raising the target price from HKD 115 to HKD 137, and maintaining a 'hold' rating. (vc/cy)

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