Daily Investment Strategy
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Bilibili(9626): net revenue for the full year 2025 reached RMB 30.35 billion, a year-on-year increase of 13%. The company achieved its first full-year profit under US Generally Accepted Accounting Principles (GAAP), recording a net profit of RMB 1.19 billion and an adjusted net profit of RMB 2.59 billion. Benefiting from increased contributions from high-margin businesses, the gross profit margin significantly improved from 32.7% in 2024 to 36.6%. In terms of user metrics, daily active users (DAU) reached 111.6 million, an increase of 8% year-on-year, and the average daily usage time increased to 108 minutes, indicating continued strengthening of community stickiness. Looking ahead to 2026, while the gaming business has shown resilience, macroeconomic fluctuations, delays in new game launches, and market competition remain potential risks. The company's strategy will focus on deepening the application of AI technology to strengthen the "flywheel effect" between the user ecosystem and monetization. Overall, although Bilibili has achieved a milestone in returning to profitability, investors will continue to closely monitor its advertising growth momentum and potential for operating expense optimization in Q1 2026.
De-escalation of tensions in Iran fuels stock market rebound
US stocks rebounded on Monday, driven by falling oil prices and market hopes that the conflict with Iran might end sooner than expected. The S&P 500 rose 0.83% to approximately 6,795, and the Nasdaq gained 1.38%, indicating a significant shift in risk appetite from last week's risk-averse mode. Following the latest airstrikes that briefly pushed oil prices above $100 per barrel, Trump's subsequent signals that the conflict might be nearing its end triggered a pullback in oil prices. If the conflict with Iran continues to de-escalate and oil prices steadily decline, airlines, tourism, and some cyclical stocks, whose earnings are highly sensitive to oil prices, are expected to see a double recovery in earnings forecasts and valuations.
Hong Kong Stock Connect saw a net inflow of HK$37.2bn on Friday, with the Tracker Fund of Hong Kong (2800) seeing the largest inflow at HK$12.6bn, followed by the Hang Seng China Enterprises ETF (2828). China Petroleum & Chemical Corporation (0386) recorded the largest net outflow at HK$650mn, followed by Yangtze Optical Fibre and Cable (0869).
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