BILIBILI-SW (09626.HK) (BILI.US) announced last Friday that, since mid-March, the increased Covid-19 restrictions and lockdowns in major cities including Shanghai, have impacted the overall economy and the company's operation to a certain extent, reported Goldman Sachs.
Based on the current situation, BILIBILI-SW forecast the net revenues for the first quarter of 2022 to be in the range of RMB5.0 billion to RMB5.1 billion, compared to the expected range of RMB5.3 billion to RMB5.5 billion previously issued in March 2022.
Goldman Sachs ramped down the 2022-24E revenue for the company by 9%, 10% and 10%, respectively, anticipating the GPM of the company to be dragged down by its sluggish online game business. The 2022-24E NPM were likewise slashed to -26.3%, -11.2% and -1.9%, respectively.
The broker restated the Neutral rating for BILIBILI-SW, with its target price axed from $268 to $231. Due to the pandemic-prevention and control restrictions imposed in multiple cities and regions including Shanghai over 1Q22, the advertising and e-commerce operations of BILIBILI-SW were particularly hampered. The visibility for 2Q22 is likewise relatively low, the broker added.
Based on the current situation, BILIBILI-SW forecast the net revenues for the first quarter of 2022 to be in the range of RMB5.0 billion to RMB5.1 billion, compared to the expected range of RMB5.3 billion to RMB5.5 billion previously issued in March 2022.
Goldman Sachs ramped down the 2022-24E revenue for the company by 9%, 10% and 10%, respectively, anticipating the GPM of the company to be dragged down by its sluggish online game business. The 2022-24E NPM were likewise slashed to -26.3%, -11.2% and -1.9%, respectively.
The broker restated the Neutral rating for BILIBILI-SW, with its target price axed from $268 to $231. Due to the pandemic-prevention and control restrictions imposed in multiple cities and regions including Shanghai over 1Q22, the advertising and e-commerce operations of BILIBILI-SW were particularly hampered. The visibility for 2Q22 is likewise relatively low, the broker added.
