Bilbili
I once told my dad i would never buy a chinese stock.
Yet here I am only buying 1 chinese stock for the last 3 months of my chump change investing schedule. And it keeps getting cheaper, and i keep getting more erect and buying more.
Bilibili is basically youtube in china, because youtube is not alllowed in china. Youtube is a great business model, and so is bilibili.
Bilibili trades at a sub-30 p/e while they are growing users, increasing time spent per user, improving ad targetting with a relatively low ad load compared to youtube. They have room to place more ads.
net margin sits at 4.9%, but they should have some operating leverage and increase the margin.
They have a pretty rational and shareholder friendly management and are not state owned or competing with state-owned companies.
I think 50% more users, 50% more revenue/per user, and double profit margin to 10% is likely to happen within 5-8 years which would over 4x net income.
If this happens i dont think multiple would shrink too much and youd at least double the investment
What do you think?