Investment Rating - The investment rating for the company is "Buy" with a current price of $3.15 and a reasonable value of $5.62 per ADS [1][2]. Core Views - The report anticipates that the company's revenue for Q2 2024 will be 7.4 billion RMB, representing a year-over-year decline of 5% and a quarter-over-quarter decline of 7%. The Non-GAAP net profit is expected to be 234 million RMB, down 61% year-over-year and 72% quarter-over-quarter, primarily due to underperformance in content playback and competition from other platforms [2][5]. - Membership revenue is projected to be 4.8 billion RMB, down 8% year-over-year and 6% quarter-over-quarter, while advertising revenue is expected to be 1.4 billion RMB, down 4% year-over-year and 3% quarter-over-quarter [3][5]. - The report highlights that the company has a rich content pipeline for Q3, which is expected to drive performance recovery in subsequent quarters [5][8]. Summary by Sections Q2 2024 Performance Outlook - Expected revenue: 74 billion RMB, YoY -5%, QoQ -7% - Non-GAAP net profit: 2.34 billion RMB, YoY -61%, QoQ -72% - Membership revenue: 48 billion RMB, YoY -8%, QoQ -6% - Advertising revenue: 14 billion RMB, YoY -4%, QoQ -3% [2][3][5]. Q3 Content Pipeline - The company has a strong content reserve, with successful shows like "唐朝诡事录之西行" leading to high viewership. Upcoming diverse content is expected to boost performance in the latter half of the year [5][8]. Profit Forecast and Investment Recommendations - Adjusted revenue forecasts for 2024-2025 are 30.9 billion RMB and 33.2 billion RMB, with corresponding growth rates of -3% and 7%. Membership revenue is expected to reach 19 billion RMB and 20.7 billion RMB in 2024-2025, with growth rates of -7% and 9% [8][10]. - The report anticipates Non-GAAP net profits of 27.66 billion RMB and 35.09 billion RMB for 2024 and 2025, respectively, and maintains a "Buy" rating based on a 14x PE valuation for 2024 [10][12].

Investment Rating - The report maintains a "Buy" rating for iQIYI (IQ) [1] Core Views - The competition in the long video supply side is intense, leading to a slight decline in iQIYI's market share in the first half of 2024. The company is expected to benefit from a rich lineup of dramas in the second half of the year [1][9] - iQIYI's revenue for Q2 2024 is projected to be 7.39 billion yuan, a year-on-year decrease of 5%. The non-GAAP net profit is expected to be 250 million yuan [1][19] - The report highlights the strong performance of upcoming dramas and the company's content production capabilities as key drivers for future revenue growth [1][19] Summary by Sections 1. Competition and Market Share - In H1 2024, the competition in the long video supply side is fierce, with iQIYI's market share slightly declining. The number of dramas released remained stable, with 63 dramas launched in Q2 2024 [1][14] - iQIYI had 5 dramas in the top 20 by viewership, while Tencent Video and Youku had 6 each, and Mango TV had 1. The overall market share of the top 20 dramas accounted for 22.8% of the total market, with iQIYI's share decreasing [1][18] 2. Upcoming Content - iQIYI has a rich lineup of dramas scheduled for release in the second half of 2024, including several high-profile works. The summer release "Tang Dynasty Ghost Stories" is expected to perform strongly, with over 5.5 million reservations and a Douban rating of 8.2 [1][19] - The company plans to launch approximately 59 dramas from H2 2024 to 2025, with many adaptations from well-known authors [1][19] 3. Financial Forecast and Investment Rating - The report forecasts a revenue of 73.9 billion yuan for Q2 2024, with a non-GAAP operating profit of 500 million yuan and a non-GAAP net profit of 250 million yuan. The non-GAAP net profit for 2024 is revised down from 3.1 billion yuan to 2.9 billion yuan [1][19] - The current stock price corresponds to a non-GAAP P/E ratio of 7, 6, and 5 for 2024, 2025, and 2026 respectively, indicating a favorable valuation given the expected content-driven revenue growth [1][19]

BEIJING, Aug. 2, 2024 /PRNewswire/ -- On July 28, iQIYI, China's leading online entertainment service, announced that its period detective drama, Strange Tales of Tang Dynasty 2: To the West, surpassed a content popularity index of 10,000, topping multiple summer drama charts. This national hit is part of iQIYI's robust summer lineup, slated to captivate audiences with premium content across genres.“Strange Tales of Tang Dynasty 2: To the West” Drama Series PosterSince premiering, Strange Tales of Tang Dyna ...

BEIJING, Aug. 01, 2024 (GLOBE NEWSWIRE) -- iQIYI, Inc. (NASDAQ:IQ) ("iQIYI" or the "Company"), a leading provider of online entertainment video services in China, today announced the results of its previously announced repurchase right offer relating to its 4.00% Convertible Senior Notes due 2026 (CUSIP No. 46267XAE8) (the "Notes"). The repurchase right offer expired at 5:00 p.m., New York City time, on Tuesday, July 30, 2024. Based on information from Citibank, N.A. as the paying agent for the Notes, US$39 ...

Investment Rating - The report maintains a "Buy" rating for the company with a target price of $5.32 per ADS, based on a projected P/E ratio of 22X for 2024 [4][10]. Core Insights - The expected revenue for Q2 2024 is $7.4 billion, reflecting a year-over-year decline of 4.9% and a quarter-over-quarter decline of 6.4%, primarily due to underperformance of key series [3]. - The anticipated gross margin for Q2 2024 is 23.5%, down 2.5 percentage points year-over-year and 5.3 percentage points quarter-over-quarter [3]. - Membership service revenue is projected at $4.5 billion for Q2 2024, a decrease of 8.5% year-over-year and 5.6% quarter-over-quarter, attributed to disappointing performance of major projects [3]. - Advertising revenue is expected to be $1.4 billion for Q2 2024, down 4% year-over-year and 3% quarter-over-quarter, mainly due to a decline in brand advertising [3]. - Content distribution revenue is forecasted at $530 million for Q2 2024, reflecting a 4% year-over-year decline and a significant 43% quarter-over-quarter drop [3]. Financial Forecast and Investment Recommendations - The company is expected to see a positive change in membership revenue in Q3 2024 with the release of "Tang Dynasty Strange Events," which has already achieved high viewership [3]. - The GAAP net profit forecast for 2024 is adjusted to $2.435 billion, with subsequent years projected at $3.875 billion for 2025 and $4.975 billion for 2026 [3][9]. - The report indicates that the company’s revenue is expected to grow from $33.125 billion in 2024 to $39.191 billion by 2026, with a compound annual growth rate of approximately 8.4% [7][13].

Investment Rating - The report maintains a BUY rating for iQIYI, indicating potential for over 15% return over the next 12 months [3][10][18] Core Views - iQIYI is expected to face short-term headwinds in 2Q24, with total revenue forecasted to decline by 5% YoY to RMB7.4 billion, primarily due to underperformance of certain drama series and a decrease in variety shows [3] - Non-GAAP operating profit is projected to drop by 36% YoY to RMB503 million, despite stable content costs and operating expenses [3] - A recovery in total revenue and profit is anticipated in 2H24, driven by a strong content pipeline [3] - The target price is set at US$6.40 based on a 16x FY24E PE, down from a previous target of US$8.60 [3][10] Revenue and Profit Forecasts - Membership revenue is expected to decline by 8% YoY to RMB4.5 billion in 2Q24, attributed to competition and underperforming content [3] - Advertising revenue is forecasted to decrease by 4% YoY to RMB1.4 billion in 2Q24, influenced by fewer variety shows [3] - For FY24E, total revenue is projected at RMB31.0 billion, with a slight decline of 2.6% YoY [4][9] Financial Metrics - Gross margin is expected to improve to 28.2% in FY24E, with non-GAAP operating margin projected at 10.4% [4][9] - Adjusted net profit for FY24E is forecasted at RMB2.8 billion, reflecting a slight decrease of 0.4% YoY [4][9] - The company is expected to maintain flattish total costs and operating expenses YoY in 2Q24E [3] Market Position - iQIYI's viewership share among the top 20 drama series has significantly declined from 39% in 1H23 to 18% in 1H24, indicating increased competition [3] - The company remains cautious on content investment and operating expenses, which may impact short-term margins [3]

Investment Rating - The report assigns a "Buy" rating for the company, iQIYI, with a target price of $6.40, reflecting a potential upside of 104.5% from the current price of $3.13 [2][8]. Core Insights - iQIYI is expected to face short-term headwinds in Q2 2024, with total revenue projected to decline by 5% year-over-year to RMB 7.4 billion due to underperformance of certain shows and a decrease in the number of variety shows [2]. - Non-GAAP operating profit is anticipated to drop by 36% year-over-year to RMB 503 million, despite content costs and operating expenses remaining stable [2]. - The company is expected to gradually recover in the second half of 2024, driven by a strong pipeline of quality content [2]. - Membership revenue is projected to decline by 8% year-over-year to RMB 4.5 billion in Q2 2024, primarily due to the underperformance of certain shows and loss of market share to competitors [2]. - Advertising revenue is expected to decrease by 4% year-over-year to RMB 1.4 billion in Q2 2024, influenced by a reduction in variety shows compared to the previous year [2]. Financial Summary - For FY24E, total revenue is projected at RMB 31.0 billion, with a year-over-year growth rate of -2.6% [5][6]. - Non-GAAP net profit is forecasted at RMB 2.8 billion for FY24E, reflecting a slight decrease of 0.4% year-over-year [5][6]. - The gross profit margin is expected to improve to 28.2% in FY24E, while the non-GAAP operating profit margin is projected to be 10.4% [6][7]. Valuation - The target price of $6.40 is based on a 16x PE multiple for FY24E, which is lower than the industry average of 25x due to intense competition in the Chinese video streaming sector [8][10].

Investment Rating - The investment rating for the company is "Buy" with a target price of $4.20, indicating a potential upside of 20.0% from the current price of $3.50 [1][13]. Core Insights - The company has revised its revenue and profit expectations downward for Q2 2024, with revenue now expected to be RMB 7.4 billion, a 4% decrease from previous estimates, and a year-on-year decline of 5% [1][2]. - The adjusted net profit forecast for Q2 2024 has been lowered to RMB 240 million, which is below Bloomberg's consensus estimate of RMB 480 million, reflecting a net profit margin of 3%, down 5 percentage points year-on-year [1][2]. - The company anticipates that its membership numbers may hit a low point in Q2 2024 but expects a recovery in Q3 due to the performance of new content [2][11]. Revenue and Profit Forecast - The revenue forecast for 2024 has been adjusted down by 3% to RMB 31.6 billion, with a projected compound annual growth rate (CAGR) of 13% for net profit from 2023 to 2025 [2][3]. - The adjusted net profit for 2024 is now estimated at RMB 2.9 billion, reflecting a 16% decrease from previous estimates [2][3]. Membership and Advertising Revenue - Membership revenue for Q2 2024 is expected to decline by 5% to RMB 4.5 billion, a 9% year-on-year decrease, primarily due to underperformance in key series [2][11]. - Advertising revenue is projected to decrease by 2% to RMB 1.5 billion in Q2 2024, with brand advertising under pressure due to lower-than-expected performance of key series and a reduction in the number of self-produced variety shows [2][11]. Financial Overview - The company reported a revenue of RMB 28.998 billion in 2022, with a projected revenue of RMB 31.873 billion in 2023, and a slight decline to RMB 31.616 billion in 2024 [3][14]. - The net profit for 2022 was RMB 1.284 billion, with projections of RMB 2.838 billion in 2023 and RMB 2.941 billion in 2024 [3][14]. Market Position - The company's share of the top 20 series viewership has decreased to 20%, trailing behind competitors like Tencent Video and Youku [2][8]. - The company is expected to benefit from the performance of new series in the second half of 2024, which may help stabilize membership revenue [2][11].

Core Insights - iQIYI's variety show "Become a Farmer" has received critical acclaim and a nomination for Best Variety Show at the 29th Shanghai TV Festival for the second consecutive year, showcasing the company's ability to deliver innovative content [1] - The show has been recognized as a 'Sustainable Agriculture Promotion Partner' by WWF China and One Planet Foundation, emphasizing its commitment to environmental sustainability and biodiversity protection [1] - The latest season featured 10 young individuals engaging in various farming activities across 450 acres, highlighting the challenges and personal growth associated with rural life [2] Content and Audience Engagement - The new season expanded its format by blending long and short-form video, introducing new crops and creating an integrated farm experience, which included fishponds and shrimp fields [3] - The show achieved a peak popularity index of 8,675 on iQIYI, with over 10 million bullet comments, and maintained the top position on Douban for 8 consecutive weeks [3] - The success of "Become a Farmer" has led to cultural influence, with participants launching businesses and engaging in livestream commerce, extending the show's impact beyond traditional media [4]

Core Viewpoint - iQIYI, Inc. will report its financial results for the second quarter of 2024 on August 22, 2024, before the U.S. market opens, with a conference call scheduled for the same day [1]. Group 1: Financial Reporting - The financial results for the second quarter ended June 30, 2024, will be announced before the U.S. market opens on August 22, 2024 [1]. - An earnings conference call will take place at 7:00 AM U.S. Eastern Time on August 22, 2024 [1]. - Participants must register in advance to receive dial-in numbers, passcode, and unique access PIN [1]. Group 2: Company Overview - iQIYI, Inc. is a leading provider of online entertainment video services in China, combining creative talent with technology for continuous innovation [3]. - The company produces, aggregates, and distributes a wide variety of professionally produced content and other video content in various formats [3]. - iQIYI utilizes advanced AI, big data analytics, and proprietary technologies to distinguish itself in the online entertainment industry [3]. - The company has developed a diversified monetization model that includes membership services, online advertising, content distribution, online games, IP licensing, talent agency, and online literature [3].