Analyst - Media&Entertainment Sector, Blue Lotus Research Institute

Stan Zhao

Analyst - Media&Entertainment Sector

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>Tencent's &lt;Honor of Kings&gt; has seen significant grossing growth following gameplay features' expansion and global servers' launch.</li>
<li>Additionally, &lt;Teamfight Tactics Mobile&gt; saw a surge in grossing rankings after its anniversary event and has since maintained a stable position.</li>
<li>&lt;Justice Mobile&gt; has stabilized following its anniversary update, while &lt;Naraka Mobile&gt; experienced a noticeable drop in revenue rankings. Future updates will be monitored to assess the game's performance moving forward.</li>
</ul>


Tencent's &lt;Honor of Kings&gt; has seen significant grossing growth following gameplay features' expansion and global servers' launch.
Additionally, &lt;Teamfight Tactics Mobile&gt; saw a surge in grossing rankings after its anniversary event and has since maintained a stable position.
&lt;Justice Mobile&gt; has stabilized following its anniversary update, while &lt;Naraka Mobile&gt; experienced a noticeable drop in revenue rankings. Future updates will be monitored to assess the game's performance moving forward.


Online Game Monitor: August 13 - September 8, 2024

Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

Equity Bottom-Up

<ul>
<li>Bilibili (BILI) reported C2Q24 revenue, GAAP operating profit, and GAAP net income in-line, 7.9%, 9.9% vs. our estimates and in-line, 12%, 18% vs. consensus. </li>
<li>BILI’s unique, urban user base and video format give it strong competitive advantage. Further, revenue from &lt;Three Kingdom&gt; game will be significant.</li>
<li>We raise our TP to US$20 and reiterate BUY .  </li>
</ul>


Bilibili (BILI) reported C2Q24 revenue, GAAP operating profit, and GAAP net income in-line, 7.9%, 9.9% vs. our estimates and in-line, 12%, 18% vs. consensus. 
BILI’s unique, urban user base and video format give it strong competitive advantage. Further, revenue from &lt;Three Kingdom&gt; game will be significant.
We raise our TP to US$20 and reiterate BUY .  


[Bilibili (BILI US, BUY, TP US$20) TP Change]: User Demographics&AI Drive China’s Video Instagram

<ul>
<li>700 HK: Based on &lt;DnF Mobile&gt; Developer Nexon's 2Q24 Financial Report, the Game Generated around RMB 7bn in Revenue During the Quarter (+)</li>
<li>700 HK: &lt;League of Legends&gt; to Introduce Another PVE Game Mode (+)</li>
<li>BILI US: Bilibili's &lt;Aether Gazer&gt; to Shut Down on November 12 (/)</li>
</ul>


700 HK: Based on &lt;DnF Mobile&gt; Developer Nexon's 2Q24 Financial Report, the Game Generated around RMB 7bn in Revenue During the Quarter (+)
700 HK: &lt;League of Legends&gt; to Introduce Another PVE Game Mode (+)
BILI US: Bilibili's &lt;Aether Gazer&gt; to Shut Down on November 12 (/)


[Blue Lotus Daily-TMT Update]:700 HK/BILI US/BABA US/PDD US/JD/3690HK/ZTO/1519HK/2352 CH/SHEIN/TCOM

<ul>
<li>Tencent's <em>&lt;LoLM&gt;</em> shows strong performance after anniversary event, reaching as high as No. 2 on the iOS Grossing Chart with strong player spending sentiment</li>
<li>NetEase's &lt;Justice Mobile&gt; grossing rank continues to decline due to the game's lifecycle, slightly lowering expectations. &lt;Naraka: Bladepoint Mobile&gt; revenue performance is stabilizing, with annual grossing expected around RMB 10bn</li>
<li>Bilibili's <em>&lt;FGO&gt;</em> shows a strong revenue trend, currently in the top 20 on the iOS Grossing Chart, slightly raising expectations</li>
</ul>


Tencent's &lt;LoLM&gt; shows strong performance after anniversary event, reaching as high as No. 2 on the iOS Grossing Chart with strong player spending sentiment
NetEase's &lt;Justice Mobile&gt; grossing rank continues to decline due to the game's lifecycle, slightly lowering expectations. &lt;Naraka: Bladepoint Mobile&gt; revenue performance is stabilizing, with annual grossing expected around RMB 10bn
Bilibili's &lt;FGO&gt; shows a strong revenue trend, currently in the top 20 on the iOS Grossing Chart, slightly raising expectations


Online Game Monitor: July 29-August 13, 2024

<ul>
<li>BABA US/PDD US/JD US: Douyin launches new merchant tool designed to avoid low-price competition (+/+/+)</li>
<li>BABA US/JD US: JD strategy change to focus on beauty products (-/+)</li>
<li>BABA US: Freshippo launches self-branded products on the Lazada. (/)</li>
</ul>


BABA US/PDD US/JD US: Douyin launches new merchant tool designed to avoid low-price competition (+/+/+)
BABA US/JD US: JD strategy change to focus on beauty products (-/+)
BABA US: Freshippo launches self-branded products on the Lazada. (/)


[Blue Lotus Daily-TMT Update]:BABA US/PDD US/JD US/3690 HK/700 HK/BILI US

China

Bilibili Inc. provides online entertainment services. The Company offers a platform that covers a wide array of genres and media formats, including videos, live broadcasting, mobile games, animation, and comics. Bilibili serves customers in China.

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Bilibili (BILI US)

Online Game Monitor: August 13 - September 8, 2024

Tencent's mobile games, like <hok> have seen growth in grossing rankings while NetEase's <naraka mobile> is facing a decline.</naraka></hok>

Blue Lotus Research Institute

[Bilibili (BILI US, BUY, TP US$20) TP Change]: User Demographics&AI Drive China’s Video Instagram

Bilibili's strong performance in Q2 and unique user base position it for continued success, with revenue from game expected to drive growth....

Blue Lotus Research Institute

[Blue Lotus Daily-TMT Update]:700 HK/BILI US/BABA US/PDD US/JD/3690HK/ZTO/1519HK/2352 CH/SHEIN/TCOM

Nexon's <dnf mobile> game generates RMB 7bn, League of Legends adds new PVE mode, Bilibili's <aether gazer> shutting down on November 12.<...

Blue Lotus Research Institute

Online Game Monitor: July 29-August 13, 2024

Tencent's <lolm> excels in post-anniversary events, NetEase's <justice mobile> declines and Bilibili's <fgo> sees strong revenue growth.</fgo><...

Blue Lotus Research Institute

[Blue Lotus Daily-TMT Update]:BABA US/PDD US/JD US/3690 HK/700 HK/BILI US

Chinese e-commerce giants are implementing new strategies to combat low-price competition and focus on beauty products, with Freshippo launching...

Blue Lotus Research Institute

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52-week Range

Market Cap (USDm)

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Dividend (Yield)

Online Game Monitor: August 13 - September 8, 2024

​Tencent's mobile games, like <hok> have seen growth in grossing rankings while NetEase's <naraka mobile> is facing a decline.</naraka></hok>

Blue Lotus Research Institute

[Bilibili (BILI US, BUY, TP US$20) TP Change]: User Demographics&AI Drive China’s Video Instagram

​Bilibili's strong performance in Q2 and unique user base position it for continued success, with revenue from game expected to drive growth....

Blue Lotus Research Institute

[Blue Lotus Daily-TMT Update]:700 HK/BILI US/BABA US/PDD US/JD/3690HK/ZTO/1519HK/2352 CH/SHEIN/TCOM

​Nexon's <dnf mobile> game generates RMB 7bn, League of Legends adds new PVE mode, Bilibili's <aether gazer> shutting down on November 12.<...

Blue Lotus Research Institute

Online Game Monitor: July 29-August 13, 2024

​Tencent's <lolm> excels in post-anniversary events, NetEase's <justice mobile> declines and Bilibili's <fgo> sees strong revenue growth.</fgo><...

Blue Lotus Research Institute

[Blue Lotus Daily-TMT Update]:BABA US/PDD US/JD US/3690 HK/700 HK/BILI US

​Chinese e-commerce giants are implementing new strategies to combat low-price competition and focus on beauty products, with Freshippo launching...

Blue Lotus Research Institute

Tencent's mobile games, like <hok> have seen growth in grossing rankings while NetEase's <naraka mobile> is facing a decline.</naraka></hok>

Bilibili's strong performance in Q2 and unique user base position it for continued success, with revenue from game expected to drive growth....

Nexon's <dnf mobile> game generates RMB 7bn, League of Legends adds new PVE mode, Bilibili's <aether gazer> shutting down on November 12.<...

Tencent's <lolm> excels in post-anniversary events, NetEase's <justice mobile> declines and Bilibili's <fgo> sees strong revenue growth.</fgo><...

Chinese e-commerce giants are implementing new strategies to combat low-price competition and focus on beauty products, with Freshippo launching...