Financial Performance - Revenue for FY25E is projected at Rmb27.245 billion, down 7% from FY24A[2] - Net profit for FY25E is expected to be Rmb104 million, a significant decline of 93% compared to FY24A[2] - Gross profit margin (GPM) is forecasted to decrease to 21.0% in FY25E from 24.9% in FY24A[2] Membership and Revenue Streams - Membership revenue for 4Q25E is estimated at Rmb4.198 billion, reflecting a 2% increase year-over-year[4] - Content distribution revenue is expected to rise by 82% year-over-year to Rmb740 million in 4Q25E, driven by successful content releases[5] - Advertising revenue is projected to grow sequentially in 4Q due to premium content offerings and seasonal events[5] Market Position and Trends - iQiyi's average viewership market share in the top 10 drama category is 30% in 4Q, down from 39% in 3Q25[4] - New policies from NRTA are anticipated to enhance content supply and distribution, potentially boosting membership and advertising revenues[6] Valuation and Recommendations - The target price is maintained at US$2.00, with a NEUTRAL rating reflecting the current market conditions[2][7] - The company’s adjusted operating profit for FY26E is projected at Rmb985 million, with a P/E ratio of 15[9]

Financial Performance - iQiyi's Q3 2025 revenue is estimated at Rmb 6.65 billion, reflecting an 8% year-over-year decline and flat quarter-over-quarter performance[2] - Membership revenue for Q3 2025 is projected at Rmb 4.26 billion, down 2% year-over-year[2] - Total revenue for FY 2025 is expected to be Rmb 27.14 billion, a decrease of 7% compared to FY 2024[1] Profitability Metrics - Net profit for FY 2025 is forecasted to drop to Rmb 173 million, an 89% decline from FY 2024[1] - Gross profit margin (GPM) is expected to decrease to 20.7% in FY 2025, down from 24.9% in FY 2024[1] - Non-GAAP operating profit for Q3 2025 is estimated at a loss of Rmb 25 million, with an operating profit margin (OPM) of -0.4%[4] Market Position and Strategy - iQiyi achieved a 40% viewing share in the Q3 drama market, significantly higher than Tencent and Youku, which both held 21%[2] - The company plans to release multiple new dramas in Q4 2025, aiming to enhance content offerings and attract more subscribers[12] Valuation and Recommendations - The target price for iQiyi is maintained at US$2.00, with a NEUTRAL rating reflecting the current market conditions[1] - The market capitalization stands at US$2.12 billion, with a current share price of US$2.20[1] Risks - Potential risks include macroeconomic deterioration and underperformance in content releases, which could impact revenue and profitability[5]