BEIJING, May 28, 2024 (GLOBE NEWSWIRE) -- iQIYI, Inc. (NASDAQ:IQ) ("iQIYI" or the "Company"), a leading provider of online entertainment video services in China, today announced that it is notifying holders of its 4.00% Convertible Senior Notes due 2026 (CUSIP No. 46267XAE8) (the "Notes") that pursuant to the Indenture and the First Supplemental Indenture, each dated as of December 21, 2020 (together, the "Indenture") relating to the Notes by and between the Company and Citicorp International Limited, as tr ...

BEIJING, May 28, 2024 (GLOBE NEWSWIRE) -- iQIYI, Inc. (Nasdaq: IQ) ("iQIYI" or the "Company"), a leading provider of online entertainment video services in China, today announced that it is notifying holders of its 4.00% Convertible Senior Notes due 2026 (CUSIP No. 46267XAE8) (the "Notes") that pursuant to the Indenture and the First Supplemental Indenture, each dated as of December 21, 2020 (together, the "Indenture") relating to the Notes by and between the Company and Citicorp International Limited, as t ...

Investment Rating - Buy (First Coverage) [1] Core Views - The company's ARM (Average Revenue per Member) has grown for six consecutive quarters, reaching a historical high in 2024Q1 [2] - The company's content distribution revenue reached a historical high in 2024Q1, indicating strong content production capabilities [2] - The company's market share in key content categories continues to lead, with over 70% of new programs being original content [2] - The company's non-GAAP operating profit margin improved by 2 percentage points year-over-year to 14% in 2024Q1 [5] Business Performance - Total revenue for 2024Q1 decreased by 5% year-over-year to RMB 7.9 billion (USD 1.1 billion) [5] - Membership service revenue decreased by 13% year-over-year to RMB 4.8 billion (USD 660 million) in 2024Q1, mainly due to a high base effect from the previous year [2] - Online advertising service revenue increased by 6% year-over-year to RMB 1.5 billion (USD 210 million) in 2024Q1, driven by growth in performance advertising [2] - Content distribution revenue increased by 28% year-over-year to RMB 930 million (USD 130 million) in 2024Q1 [2] - Other revenue increased by 7% year-over-year to RMB 720 million (USD 100 million) in 2024Q1, mainly due to increased revenue from third-party collaborations [2] Content Strategy - The company has a diversified and high-quality content portfolio, with over 70% of new programs being original content [2] - Key programs such as "Chasing the Wind" and "Southbound and Northbound" have achieved significant market share and viewership records [2] - The company continues to innovate in content categories such as movies, variety shows, children's programs, and animation [2] Financial Forecast - Non-GAAP net profit attributable to the parent company is expected to be RMB 3.12 billion, RMB 3.80 billion, and RMB 4.45 billion for 2024, 2025, and 2026, respectively [2] - The current stock price corresponds to a PE ratio of 10x, 9x, and 7x for 2024, 2025, and 2026, respectively [2] Cost and Profitability - Operating costs decreased by 5% year-over-year to RMB 5.6 billion (USD 780 million) in 2024Q1, with content costs also decreasing by 5% to RMB 4.0 billion (USD 550 million) [15] - Non-GAAP operating profit increased by 5% year-over-year to RMB 1.1 billion (USD 150 million) in 2024Q1 [16] - The company generated positive operating cash flow for eight consecutive quarters, with free cash flow of RMB 920 million (USD 130 million) in 2024Q1 [16] Content Pipeline - The company has a rich content pipeline for 2024-2025, including dramas, variety shows, and movies, with a focus on original and high-quality content [12][13][14]

BEIJING, May 23, 2024 /PRNewswire/ -- On May 20, iQIYI, a leading online entertainment service in China, announced the upcoming launch of a VR immersive theater at first floor of Galaxy Promenade in Galaxy Macau this summer, adapted from its hit series Love Between Fairy and Devil, showcasing iQIYI's commitment to expanding location-based entertainment through its unique blend of 'IP+ Technology.' Poster of iQIYI VR immersive theater 'Love Between Fairy and Devil'Poster of iQIYI VR immersive theater 'Love B ...

公司研究 | 季报点评 爱奇艺 IQ.O 买入（维持） AI 助力内容 ROI 持续提升 股价（2024年05月17日） 5.26美元 目标价格 7.76美元 52周最高价/最低价 6.47/3.06美元 ——爱奇艺（IQ.O）24Q1点评 总股本/流通股（亿股） 9.60/5.25 美股市值（亿美元） 50.48 核心观点 国家/地区 中国 行业 传媒 ⚫ 24Q1营收79亿(yoy+5.1%, qoq+2.9%)，增长主要系内容分发收入增长驱动。我 报告发布日期 2024年05月19日 们预期Q2或达77亿。24Q1毛利率29% (yoy+0.30pp, qoq+0.76pp)；销售及一般 行政费用为9.2亿（yoy-16.6%，qoq-2.7%）；研发费用为4.3亿（yoy+0.2%， 1周 1月 3月 12月 qoq-5.0%）；GAAP归母净利润6.6亿（yoy+6.0%，qoq+40.6%）；Non-GAAP 绝对表现% 7.57 26.14 46.52 -3.49 归母净利润8.4亿（yoy-10.1%，qoq+23.8%）。24Q2因竞品较多，我们预期 相对表现% 5.46 19.75 40. ...

Investment Rating - The report assigns a "Buy" rating to the company, iQIYI (IQ US), with a target price of $6.70, indicating a potential upside of 15.7% from the current price of $5.79 [1][3][14]. Core Insights - iQIYI's Q1 2024 revenue reached 7.93 billion RMB, a year-over-year decline of 5% but a quarter-over-quarter increase of 3%, aligning with market expectations. Adjusted operating profit was 1.1 billion RMB, exceeding expectations of 800 million RMB and 700 million RMB from the market, resulting in an adjusted operating margin of 14%, benefiting from better-than-expected cost optimization [1][2]. - The report highlights the impact of AIGC (Artificial Intelligence Generated Content) on operational efficiency and advertising revenue growth, with advertising income increasing by 6% year-over-year to 1.5 billion RMB, driven by double-digit growth in performance advertising [2][12]. - The company is expected to face increased competition in the second quarter, leading to a slight downward adjustment in membership revenue expectations for 2024, although operating profit expectations remain unchanged due to faster-than-expected cost optimization [2][12]. Financial Overview - For the fiscal year ending December 31, 2024, the company is projected to generate revenue of 32.65 billion RMB, with a net profit of 3.50 billion RMB, reflecting a year-over-year growth of 2.4% and 23.8% respectively [3][15]. - The report provides a detailed financial outlook, including projected earnings per share (EPS) of 3.60 RMB for 2024, with a price-to-earnings (P/E) ratio of 11.6 times [3][15]. - The company’s cash flow from operations is expected to improve significantly, with operating cash flow projected at 2.78 billion RMB in 2024 [15]. Market Position and Strategy - iQIYI continues to focus on differentiated content strategies, particularly in realistic themes, which are expected to maintain its competitive edge in the market [2][12]. - The report notes that the company is exploring more opportunities for membership value-added services, which will further enhance its Average Revenue per Member (ARM) [2][12]. - The international market shows promising growth, with overseas membership revenue increasing by over 80% in regions like Hong Kong and the UK, indicating a successful local content strategy [2][12].

Investment Rating - The report assigns a neutral rating to iQIYI (IQ.O) with a price target based on expected earnings per share (EPS) growth and market performance [1]. Core Insights - iQIYI's Q1 2024 performance exceeded expectations, with revenue of 7.927 billion yuan, a year-over-year decrease of 5.0%. The operating profit was 0.945 billion yuan, with an operating margin of 11.9% [1]. - The report highlights the continuous improvement in Average Revenue per Member (ARM), which has increased for six consecutive quarters. The company aims to enhance ARM through refined operations and value-added services [1]. - The content distribution revenue saw a significant year-over-year increase of 27.6%, driven by the release of key content [1]. - iQIYI maintains the highest market share in the drama segment for nine consecutive quarters, with over 70% of new key dramas being original content [1]. - The company has successfully transitioned to profitability, achieving positive GAAP net profit for the first time in 2023 and maintaining positive Non-GAAP net profit for nine consecutive quarters [1]. Summary by Sections Financial Performance - Q1 2024 revenue was 7.927 billion yuan, with a breakdown showing membership revenue at 4.799 billion yuan (60.5% of total revenue), advertising revenue at 1.482 billion yuan (18.7%), content distribution revenue at 0.928 billion yuan, and other revenue at 0.718 billion yuan [1]. - The operating cost was 5.6 billion yuan, with content costs at 4 billion yuan, reflecting a year-over-year decrease of 4.8% [1]. - The gross margin improved to 29.0%, with GAAP and Non-GAAP operating margins at 12% and 14%, respectively, significantly exceeding market expectations [1]. Market Position - iQIYI's drama market share remains the highest in the industry, with a focus on enhancing original content and expanding into various genres [1]. - The introduction of new content formats, such as micro-theater and children's programming, is expected to strengthen its competitive position [1]. Future Outlook - The report suggests that iQIYI's content pipeline is robust, with anticipated releases like the "Fox Demon Little Red Lady" series, indicating a positive outlook for continued growth [1].

Investment Rating - The investment rating for the company is "Buy" with a market price of USD 5.26 and a sector rating of "Outperform" [1][2]. Core Views - The company experienced a slight decline in membership revenue due to a high base effect from the previous year, but maintained high operational efficiency, achieving the best quarterly operating profit [2]. - The company is expected to focus on maximizing long-term membership revenue rather than just increasing membership numbers, with new growth opportunities anticipated from overseas business, IP derivative payments, and AIGC [2][3]. Financial Performance Summary - In Q1 2024, the company's operating revenue was CNY 79.27 billion, a year-on-year decrease of 5% but a quarter-on-quarter increase of 3% [2]. - Non-GAAP operating profit reached CNY 10.86 billion, with an operating profit margin of 14%, marking the best quarterly performance [2][4]. - GAAP net profit was CNY 6.55 billion, up 6% year-on-year and 41% quarter-on-quarter [2]. - Membership revenue for Q1 2024 was CNY 47.99 billion, down 13% year-on-year but stable quarter-on-quarter [2][4]. - Advertising revenue was CNY 14.82 billion, a year-on-year increase of 6% but a quarter-on-quarter decrease of 10% [2]. - Content distribution revenue surged to CNY 9.28 billion, up 27% year-on-year and 83% quarter-on-quarter, primarily due to increased important copyright sales [2][4]. Valuation and Future Projections - The company is projected to continue building a stable production system with a focus on profit and cash flow performance [2]. - Expected non-GAAP net profits for 2024, 2025, and 2026 are CNY 40.0 billion, CNY 45.8 billion, and CNY 51.5 billion respectively, with corresponding EPS of CNY 4.09, CNY 4.64, and CNY 5.21 [3][4].

M N 17 May 2024 CMB International Global Markets | Equity Research | Company Update iQIYI (IQ US) Margin surprise on higher efficiency Target Price US$8.60 1Q24 beat on margin again, with adj. NP at RMB844mn (91% above Up/Downside 48.5% consensus) and top line 1% above consensus. For 2Q24E, we expect IQ’s Current Price US$5.79 revenue -1% YoY (in which subs revenue -5% YoY while ads +7% YoY), China Entertainment with a rich content pipeline ahead (e.g. Fox Spirit Matchmaker <狐妖小红 娘>). We forecast 2Q24E non- ...

IQIYI, Inc. (NASDAQ:IQ) Q1 2024 Earnings Conference Call May 16, 2024 7:00 AM ET Company Participants Chang Yu - IR Yu Gong - Founder, Director and CEO Jun Wang - CFO Xiaohui Wang - Chief Content Officer Wenfeng Liu - Chief Technology Officer Youqiao Duan - Senior Vice President of our Membership business WU Gang Lu - Senior Vice President of Brand Advertising business Conference Call Participants Xueqing Zhang - CICC Maggie Ye - CLSA Thomas Chong - Jefferies Lincoln Kong - Goldman Sachs Operator Thank you ...