iQIYI-爱奇艺：Margin surprise on higher efficiency

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- ...