Bilibili: A Deep Dive Into The 299% Operating Income Surge And New Valuation

Kenio Fontes2.1K FollowersFollow5ShareSavePlay(9min)CommentsSummaryBilibili demonstrates strong operating leverage, with Q4 revenue up 8% and adjusted operating margin reaching 10%.Advertising revenue surged 27% YoY, driven by high user engagement and improved ad infrastructure, while DAUs grew 10% and daily time spent rose 8%.Despite gaming revenue declining 14% and MAU growth slowing, BILI's ecosystem remains robust, supporting higher ARPU and long-term expansion potential.I maintain a buy rating on BILI, as fundamentals strengthen and valuation remains attractive with an EV-to-OI of 8.57x (2030). helloabc/iStock Editorial via Getty Images Bilibili (BILI) is a thesis that I find very interesting in the Chinese market, and now that I have sold my Alibaba (BABA) position, I am considering opening a new position toThis article was written byKenio Fontes2.1K FollowersFollowEquity Research Analyst with a broad career in the financial market, covered both Brazilian and global stocks. As a value investor, my analysis is primarily fundamental, focusing on identifying undervalued stocks with growth potential. Feel free to reach out for collaborations or to connect!Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.