iQIYI, Inc. Sponsored ADR (IQ) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.I ...

Investment Rating - The report maintains a "Buy" rating with a target price of $7.75 [3][4]. Core Insights - The company's Q4 performance met expectations, with steady growth in membership and advertising revenue, and a new high in Average Revenue per Member (ARM) [3]. - Revenue for Q4 2023 reached 77.06 billion RMB, a year-on-year increase of 1%, driven by membership and advertising income [3]. - Adjusted net profit for Q4 2023 was 6.82 billion RMB, with an adjusted net profit margin of 9%, reflecting strong growth across multiple operational metrics [3]. Summary by Sections Financial Overview - The company achieved a Q4 operating profit of 7.4 billion RMB, with an operating profit margin of 10.0%, up 0.7 percentage points quarter-on-quarter [3]. - Adjusted operating profit was 9.28 billion RMB, with an adjusted operating profit margin of 12%, up 0.9 percentage points quarter-on-quarter [3]. Membership Revenue - Membership revenue for Q4 2023 was 48.09 billion RMB, a year-on-year increase of 1%, primarily driven by ARM growth [3]. - The average revenue per member (ARM) reached 15.98 RMB, a year-on-year increase of 9%, marking a new high [3]. Advertising Revenue - Advertising revenue for Q4 2023 was 16.51 billion RMB, a year-on-year increase of 6%, continuing a positive growth trend [3]. - Brand advertising and performance advertising both showed healthy growth, with content-targeted advertising accounting for over 50% of brand advertising revenue [3]. Other Business Segments - Content distribution revenue for Q4 2023 was 5.06 billion RMB, a year-on-year decrease of 21%, mainly due to content distribution scheduling and reclassification of film revenue [3]. - Other business revenue reached 7.41 billion RMB, a year-on-year increase of 13%, benefiting from contributions from third-party collaborations [3]. Profit Forecast - The report adjusts profit forecasts for 2024-2026, expecting adjusted net profits of 37 billion RMB, 47 billion RMB, and 56 billion RMB respectively [3].

Investment Rating - The investment rating for the company is "Buy" with a target price of USD 5.60, indicating a potential upside of 52.6% from the current price of USD 3.67 [2][15]. Core Insights - The company's Q4 2023 revenue was RMB 7.7 billion, slightly exceeding expectations, with a year-on-year growth of 1% and a quarter-on-quarter decline of 4% [2]. - Adjusted operating profit for Q4 2023 was RMB 979 million, which was 3% higher than expectations, resulting in an adjusted operating profit margin of 12% [2]. - The company is experiencing a continuous improvement in Average Revenue per Member (ARM), which increased by 13% year-on-year and 3% quarter-on-quarter, despite a decrease in the number of members [2][7]. Financial Performance Summary - Total revenue for 2023 is projected to be RMB 31.87 billion, with a year-on-year growth of 9.9% [3]. - Net profit for 2023 is expected to reach RMB 2.84 billion, reflecting a significant recovery from a loss in the previous year [3]. - The company anticipates a continued increase in adjusted operating profit to RMB 4.7 billion by 2024, with a corresponding increase in earnings per share [3][13]. Membership and Advertising Insights - Membership revenue for Q4 2023 was RMB 4.8 billion, with a slight year-on-year increase of 1% [2]. - Advertising revenue for Q4 2023 was RMB 1.7 billion, showing a year-on-year growth of 6%, primarily driven by brand advertising [2]. - The overseas market showed strong performance, with a 20% year-on-year increase in overseas advertising revenue, and membership revenue in regions like Japan and Hong Kong growing by over 80% [2]. Cost Management and Profitability - Content costs accounted for 48% of total revenue in Q4 2023, with ongoing efforts to optimize these costs leading to improved gross margins [12]. - The company is expected to maintain a focus on cost control and content optimization, which is anticipated to enhance profitability in the long term [2][12].

公司研究 | 季报点评 爱奇艺 IQ.O 买入（维持） 现金流稳定增长，剧集 ROI 提升 股价（2024年03月01日） 3.82美元 目标价格 6.80美元 52周最高价/最低价 7.86/3.06美元 ——爱奇艺（IQ.O）23Q4点评 总股本/流通股（亿股） 9.57/5.22 美股市值（亿美元） 36.55 核心观点 国家/地区 中国 行业 传媒 ⚫ 23Q4营收77亿(yoy+1.50%, qoq-3.85%)，同比增长主要系会员收入增长驱动。我 报告发布日期 2024年03月04日 们预期24Q1或达78亿。Q4毛利率28% (yoy-0.65pp, qoq+1.06pp)；销售及一般 行政费用为9.5亿（yoy-3.31%，qoq-3.42%）；研发费用为4.5亿（yoy-5.04%， 1周 1月 3月 12月 qoq+1.00%）；GAAP归母净利润4.67亿（yoy+53.24%，qoq-2.04%）；Non- 绝对表现% 8.83 16.11 -13.18 -44.23 GAAP归母净利润6.82亿（yoy+20.36%，qoq+9.64%）。24Q1为广告淡季，我们 相对表现% 7.0 ...

[Table_Page] 季报点评|媒体Ⅱ 证券研究报告 [T[【aTbalbel_eS_广uTmitlem] a发ry] 传媒&海外】爱奇艺（ IQ） [公Tab司le_评Inve级st] 买入 当前价格 3.67美元 持续巩固多元化精品内容制作，ARM 连 合理价值 8.03美元 前次评级 买入 续五个季度环比提升 报告日期 2024-02-29 核心观点： 相[Ta对ble市_P场icQ表uot现e]  公司发布23Q4季报：爱奇艺23Q4收入为77.06亿元，YoY+1%/QoQ SPX Index 50% IQ US Equity -4%，vs.一致预期为76.78亿元。毛利率为28.2%，同比下降1pct，环 0% 比提高1pct，vs.一致预期为28.25%。运营利润7.74亿元，YoY-1%， QoQ +4%，vs 一致预期为 7.33 亿元。归母净利润为 4.66 亿元， -50% YoY+53%/QoQ-2%,vs.一致预期为4.41亿元。经调整运营利润为9.28 -100% 亿元（运营利润率 12%），vs.一致预期为 8.94 亿元；经调整净利润为 6.82亿元（净利润率为9%），v ...

Core Insights - The Zacks Rank system emphasizes earnings estimates and revisions to identify winning stocks, with a focus on value investing as a preferred strategy in various market conditions [1] - Value investors utilize fundamental analysis and traditional valuation metrics to identify undervalued stocks [1] - The Style Scores system, particularly the "Value" category, helps investors find stocks with high value grades and strong Zacks Ranks [1] Company Analysis: iQIYI (IQ) - iQIYI currently holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong investment potential [2] - The company's P/B ratio is 2, which is favorable compared to the industry average P/B of 3; IQ's P/B has fluctuated between 1.74 and 7.92 over the past 52 weeks, with a median of 2.97 [2] - iQIYI's P/S ratio is 0.75, significantly lower than the industry's average P/S of 1.12, suggesting it may be undervalued [2] - The P/CF ratio for iQIYI is 6.73, which is considerably lower than the industry average of 17; this ratio has ranged from 2.82 to 10.13 in the past 12 months, with a median of 5.02 [3] - Overall, the metrics indicate that iQIYI is likely undervalued, and its strong earnings outlook positions it as one of the market's strongest value stocks [3]

29 Feb 2024 Earnings Summary CMB International Global Markets | Equity Research | Company Update iQIYI (IQ US) Improving profitability with solid guidance iQIYI (IQ) delivered better-than-feared 4Q23 results with inline topline and upbeat margin. Looking into 1Q24E, we expect both revenue and earnings to see sequential growth, with solid ARM trend. We keep confident on IQ's previous FY24E OP target (at RMB5bn), with disciplined content cost and ARM expansion. Given already-low expectation and clear profitab ...

Exhibit 99.1 iQIYI Announces Fourth Quarter and Fiscal Year 2023 Financial Results BEIJING, CHINA, February 28, 2024 – iQIYI, Inc. (Nasdaq: IQ) ("iQIYI" or the "Company"), a leading provider of online entertainment video services in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2023. Fourth Quarter 2023 Highlights Fourth Quarter 2023 Operating Highlights Footnotes: [1] Unless otherwise noted, RMB to USD was converted at an exchange rate of R ...

传媒 | 证券研究报告 — 调整盈利预测 2024年2月29日 IQ 爱奇艺 买入 2023 年业绩表现创历史最好水平 原评级：买入 市场价格:美元 3.67 爱奇艺 2023 全年业绩创历史最好水平；领先全网剧集播放排行榜，新增长点有 望来自于海外业务、IP衍生付费和AIGC。维持“买入”评级。 板块评级:强于大市 支撑评级的要点 股价表现  公司2023全年业绩表现创历史最好水平。爱奇艺23Q4营业收入77.1亿元， 同比+1.5%，环比-3.9%；GAAP净利润4.66亿元，同比+53.2%，环比-2.0%； non-GAAP净利润6.82亿元，同比-20.4%，环比+9.6%。2023年全年收入318.7 亿元，同比+9.9%；non-GAAP净利润28.4亿元，同比+121%，净利润率8.9%， 同比+4.5ppts。根据业绩会管理层发言，公司 2024年继续注重利润表现，预 期利润增长幅度仍将高于收入增长；新增长点有望来自于海外业务、IP衍生 付费和AIGC。  平均会员月付费持续提升，爱奇艺领先全网剧集播放表现。23Q4 会员收入 (%) 今年 1 3 12 48.1亿元，同比+1.4%，环 ...

iQIYI, Inc. (NASDAQ:IQ) Q4 2023 Earnings Conference Call February 28, 2024 6:30 AM ET Company Participants Chang Yu - IR Director Tim Gong - Founder, CEO & Director Jun Wang - CFO Xiaohui Wang - Chief Content Officer Wenfeng Liu - CTO Conference Call Participants Xueqing Zhang - CICC Lincoln Kong - Goldman Sachs Group Lei Zhang - Bank of America Merrill Lynch Operator Good day and welcome to the iQIYI Fourth Quarter and Fiscal Year 2023 Earnings Conference Call. [Operator Instructions]. I would now like to ...