10 Best Chinese Stocks to Buy According to Hedge Funds

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6. Bilibili Inc. (NASDAQ:BILI)

Number of Hedge Fund Holders: 20

On April 13, Morgan Stanley upgraded Bilibili Inc. (NASDAQ:BILI) from Equalweight to Overweight and lifted the price target to $31 from $25. This uplift matches the stock’s performance, with a one-year price appreciation of approximately 29%.

The firm’s optimism is based on the upcoming three games to power inflection in the latter half of the year. The star of the games will be Romance of the Three Kingdoms: Wangdaotianxia, with a potential launch by the last quarter. The contribution will be followed by NCard and Lumi Master. According to Morgan Stanley, the game has the potential to generate annualized gross earnings of 1.7 billion yuan. That said, the firm forecasts 2027 game revenue of 7.8 billion yuan, relative to the consensus estimate of 6.8 billion yuan.

Morgan Stanley anticipates manageable cannibalization between San Mou and San Wang. Previously, San Mou was behind the quarterly game revenue rise through Q2 FY25. The firm highlighted that while San Mou provides a lighter SLG experience, San Wang is for a more hardcore SLG audience.

Bilibili Inc. (NASDAQ:BILI) is a Chinese entertainment services company offering digital content, advertising services, and IP derivatives. Founded in 2009, the company also deals in development activities, e-commerce business, and game distribution activities.

While we acknowledge the potential of BILI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BILI and that has 100x upside potential, check out our report about the cheapest AI stock.

Click to continue reading and see the 5 Best Chinese Stocks to Buy According to Hedge Funds.

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