KGI Research Singapore

Singapore's leading broker offering Futures, FX, Equities and Wealth Management.

HONG KONG IPO: BILIBILI

(Only for Accredited Investors or for Applications above SGD200,000)

IPO INFO

Industry SectorInternet
Issue Price (HK$)Max. 988
Total Share Offer Size (HK$ Mn)24,332
FY20 P/S (x)26
SponsorMorgan Stanley, Goldman Sachs, J.P. Morgan & UBS
Dealing of Shares29 March 2021

About Bilibili

  • Bilibili is an iconic brand and a leading video community for young generations in China. Over 86% of the Company’s MAU are aged 35 and below in 2020, which is the highest among the major video-centric platforms in China, according to the iResearch.
  • In its community, users and content creators discover and interact with diverse content encompassing different interests, from lifestyle, game, entertainment, anime, technology and knowledge to many more.
  • The company generates revenues primarily from mobile games, VAS, advertising, e-commerce and others.
  • Bilibili has a large and fast-growing user base. In 4Q20, the company had an average of 202mn MAU, an increase of 55% over the same period in 2019. According to the iResearch Report, over 86% of Bilibili’s MAU are aged 35 and below in 2020, ranking No. 1 among top 10 video-centric mobile apps in China in 2020.
  • In terms of operating data, average monthly paying users grew 106% YoY to 14.8mn in 2020, but average monthly revenue per paying users fell 20% YoY to Rmb48.7. Nonetheless, average monthly revenue per MAU rose 13% YoY to Rmb5.4.
  • Bilibili targets MAU to reach 400mn by 2023, beating market expectation. The increase is expected to be driven by content genre expansion. Revenue upside will come from improvement in monetization capabilities of Bilibili going forward.

Strategic investors of Bilibili include Tencent (0700) and Alibaba (9988), which will hold 11.6% and 6.3% stakes respectively upon completion of the IPO.

Although near-term share performance depends on offer price discount to that of the ADS, being one of the core entertainment video community in China, its rapidly-growing, sticky and active community users will propel long-term revenue growth for Bilibili.