Initiating on Chinese Video Sharing Platform Bilibili at $38.20 FVE; Shares Undervalued

We initiate coverage of Chinese video-sharing platform Bilibili with a favorable long-term view. We assign the firm a fair value estimate of USD 38.20 (HKD 300.00) with no-moat and stable moat trend ratings. Bilibili’s business model is subject to more regulatory uncertainty than other Chinese internet companies under our coverage, translating to our very high uncertainty rating. That said, we still see opportunity in Bilibili following the past year’s pullback, with shares trading 30% below our fair value estimate.