Bilibili Raises Target Price to $32 Amid Positive Earnings Outlook

Bilibili (BILI) raised its target price to $32 by CMB International, maintaining a "buy" rating. Q2 revenue reached RMB 7.3 billion, a 20% YoY increase, and adjusted net profit surpassed projections. CMB International raised its adjusted net profit expectations for 2025 and 2026. The firm anticipates 4% YoY revenue growth in Q3 and expects advertising revenue to maintain a 20% growth rate.

Title: Bilibili's Strong Q2 Performance Drives Optimism Amid Analyst Ratings

Bilibili Inc. (BILI), a leading Chinese digital entertainment company, reported robust financial results for the second quarter of 2025, with total net revenues reaching RMB7.3 billion, a 20% year-over-year (YoY) increase. The company's adjusted net profit surpassed expectations, with CMB International raising its target price to $32 and maintaining a "buy" rating.

Key Financial Highlights:
- Revenue Growth: Total net revenues grew by 20% YoY to RMB7.3 billion, driven primarily by strong performance in the advertising and mobile games businesses [1].
- Gross Profit: Gross profit increased by 46% YoY to RMB2.7 billion, with the gross margin expanding to 36.5% from 29.9% in the same period last year [1].
- User Engagement: Daily Active Users (DAUs) reached a new high of 109 million, up 7% YoY, while Monthly Active Users (MAUs) grew by 8% to 363 million. Monthly Paying Users (MPUs) increased by 9% to 31 million, indicating strong user engagement and retention [1].
- Cash Position: As of June 30, 2025, Bilibili had cash and cash equivalents, time deposits, and short-term investments totaling RMB22.3 billion (USD3.1 billion) [1].

Analyst Insights:
CMB International, a prominent financial institution, has raised its target price for Bilibili to $32, reflecting the company's strong performance and growth prospects. The firm anticipates 4% YoY revenue growth in the third quarter and expects advertising revenue to maintain a 20% growth rate [2].

Challenges and Risks:
Despite the positive performance, Bilibili faces several risks and uncertainties, including market conditions, regulatory changes, and competition. The company's reliance on its Gen Z plus audience and early-stage international expansion also pose potential risks [1].

Forward-Looking Statements:
During the earnings call, Juliet Yang, the company's IR officer, emphasized the importance of considering uncertainties in forward-looking statements. These include market conditions, regulatory changes, and competition, which could impact the company's future performance [1].

Conclusion:
Bilibili's Q2 2025 earnings report underscores the company's strong performance and growth potential. While the company faces several risks and uncertainties, its robust financial results and analyst optimism suggest a promising outlook for the future. Investors are advised to monitor the company's gaming pipeline sustainability, ad monetization effectiveness, and cost discipline amid substantial cash reserves.

References:
[1] https://finance.yahoo.com/news/bilibili-inc-announces-second-quarter-100000099.html
[2] https://www.ainvest.com/news/bilibili-exceeds-q2-2025-earnings-expectations-20-revenue-growth-2508/