The stock of BILIBILI-W (09626) skyrocketed 14.02% in intraday trading on Friday, caught up in a broad rally of Chinese tech stocks listed in Hong Kong. This surge came on the heels of the company's better-than-expected fourth-quarter earnings report.
BILIBILI-W reported a 22% year-over-year increase in revenue to 7.73 billion yuan, achieving a profit with adjusted earnings per share of $0.15, exceeding analyst expectations of $0.14. While sales of $1.06 billion fell slightly short of the $1.07 billion estimate, the overall earnings surprise fueled investor confidence in the company's growth prospects.
Beyond BILIBILI-W's impressive performance, the broader Chinese tech sector experienced a remarkable upswing. The Hang Seng Tech Index climbed 5% to a new three-year high, marking its sixth consecutive week of gains, the best winning streak since May 2020. This rally was driven by a combination of factors, including the breakthrough of the DeepSeek AI model, which reignited global interest in Chinese tech firms, and Beijing's potential shift towards a more supportive stance for the private sector.