iQIYI(US:IQ)2024-02-28 16:00Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company achieved its best annual performance in 2023, with a revenue of 31.87 billion RMB, a year-on-year increase of 9.9% [4] - The company expects profit growth to outpace revenue growth in 2024, with new growth drivers anticipated from overseas business, IP derivative payments, and AIGC [4] Financial Performance - In Q4 2023, the company reported revenue of 7.71 billion RMB, a year-on-year increase of 1.5% and a quarter-on-quarter decrease of 3.9% [4] - The GAAP net profit for Q4 2023 was 466 million RMB, up 53.2% year-on-year but down 2.0% quarter-on-quarter [4] - The non-GAAP net profit for Q4 2023 was 682 million RMB, down 20.4% year-on-year but up 9.6% quarter-on-quarter [4] - The company’s total revenue for 2023 was 31.87 billion RMB, with a non-GAAP net profit of 2.84 billion RMB, reflecting a year-on-year increase of 121% [4] Membership and Advertising - Membership revenue in Q4 2023 was 4.81 billion RMB, a year-on-year increase of 1.4% [4] - The average monthly payment per member reached 16.0 RMB, a year-on-year increase of 12.8% [4] - The company had a total advertising revenue of 6.22 billion RMB in 2023, a year-on-year increase of 16.7% [4] Cost and Efficiency - Content costs in Q4 2023 were 3.7 billion RMB, down 5% year-on-year, with the cost-to-revenue ratio decreasing to 48% [4] - The company maintained a sales and management expense ratio of 12.6% for 2023, a slight increase of 0.6 percentage points year-on-year [4] Future Projections - The report projects non-GAAP net profits of 3.89 billion RMB for 2024 and 4.41 billion RMB for 2025, with corresponding PE ratios of 6.6 and 5.9 [5]