【招银国际】Inline 4Q24 results; increase quality content supply to revitalize business growth-250219（5页）.pdf

1、 PLEASE READ THE ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES ON LAST PAGE MORE REPORTS FROM BLOOMBERG:RESP CMBR OR http:/.hk 1 MN 19 Feb 2025 CMB International Global Markets|Equity Research|Company Update iQIYI(IQ US)Inline 4Q24 results;increase quality content supply to revitalize business gro

2、wth iQiyi reported inline 4Q24 results:total revenue declined by 14%YoY to RMB6.61bn,in line with our/Bloomberg consensus estimate;non-GAAP operating income declined by 56%YoY but grew by 10%QoQ to RMB406mn,vs our estimate of RMB395mn.FY24 total revenue declined by 9%YoY to RMB29.2bn,with non-GAAP o

3、perating margin down by 3.8ppt YoY to 8.1%primarily due to operating deleverage and content investment.Management saw QoQ recovery of business performance in 1Q25,driven by the launch of several quality drama series.We expect total revenue to grow by 7%QoQ,but still to decrease by 11%YoY to RMB7.07b

4、n in 1Q25.We lower our FY25-26 total revenue forecast by 4-7%in view of the slower-than-expected recovery pace.We trim our target price to US$2.80 based on 13x FY25E non-GAAP PE(previous:US$3.00 based on 12x FY25E PE).Maintain BUY.Business performance recovered from Dec 2024 onwards.Membership servi

5、ces revenue decreased by 15%YoY to RMB4.10bn in 4Q24,primarily attributable to the soft content slate in Oct&Nov 2024.That said,since late Nov 2024,the launch of several pieces of quality content drove a solid rebound of membership business and reinforced iQiyis top position in terms of total drama

6、market share in 4Q24 as per Enlightent.Online advertising revenue was down by 13%YoY to RMB1.43bn in 4Q24,mainly due to the decline in brand advertising revenue,but partially offset by the growth of performance-based advertising revenue.Content distribution revenue declined by 20%YoY to RMB407mn in