Investing.com -- Bernstein started coverage of Kuaishou Technology and Bilibili Inc (NASDAQ:BILI). with Outperform ratings, arguing both Chinese online‑video operators are set to capture a larger share of digital advertising as viewing habits shift from text and images to short and long‑form clips.
The broker set a HK$75 target for Kuaishou and $28 for Bilibili, saying the “videolisation” of the internet should lift ad spending on the sector by roughly 1.5 percentage points a year.
After years of intense rivalry, Bernstein sees “a stable competitive set emerging,” allowing multiple platforms to thrive as each cultivates distinct user and creator communities.
Kuaishou, the larger and more mature player, is “on the cusp of an EBITDA inflection,” Bernstein said, pointing to new ad‑load formats, recovering e‑commerce traffic and artificial‑intelligence tools such as the Kling engine.
It expects ad revenue to rise about 14% next year and 13% in 2026.
Bilibili, a leader in professionally user‑generated video (PUGV), is earlier in its growth curve but could deliver annual earnings growth above 20% and eventually reach an 18% net‑profit margin, the note said.
Bernstein cited a pipeline of genre‑diverse mobile games and AI‑driven ad products as additional upside drivers.
“Online video platforms [will] benefit from strong secular trends of continued usage growth, increasing ad penetration and a more stable co‑existence of platforms,” Bernstein wrote.
It added that artificial intelligence should sharpen ad targeting and boost cost‑per‑thousand rates, creating a “virtuous loop” for revenue and margins.
Near‑term catalysts differ. Kuaishou’s second‑ and third‑quarter advertising performance will test Bernstein’s thesis, while Bilibili’s shares may remain volatile until later in the year, when game‑release timing and 2025 ad‑growth guidance become clearer.
Bernstein maintains a positive sector stance, contending that both companies are “compelling plays” on China’s video‑centric internet, albeit with “slightly different flavours of exposure” to the trend.
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