J.P. Morgan raises the target price of Maotai to 340 Hong Kong dollars and reaffirms it as the top pick in the industry.

J.P. Morgan released a report stating that regarding the earnings announcement from Bilibili, it is expected that the revenue in the first half of 2025 will increase by more than 2 times to 13.67 billion RMB, and the adjusted net profit will increase by more than 3.5 times to 4.5 billion RMB. This implies that the net profit margin for the period may increase by about 10 percentage points to 32%; a 24% increase from the bank's expectations. The report also mentioned that the stock has increased by 60% and 5.88 times in the past 3 and 12 months, respectively, while the Hang Seng Index has increased by 15% and 39% during the same period. In the short term, the stock price may face profit-taking pressure, but it is still recommended to buy on dips, as the company's long-term investment logic remains solid, including its strong IP operation capabilities and IP monetization model. The bank has raised its profit forecasts, with the latest estimates for full-year revenue and net profit in 2025 reaching 30.4 billion and 9.4 billion RMB, respectively. The compound annual growth rates for revenue and profit from 2025 to 2027 are expected to be 23% and 25%; reiterating it as the top choice in the Chinese consumer sector, the target price has been raised from 330 HKD to 340 HKD, with a rating of "Hold".