External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

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<ul><li>We expect iQiyi 2Q25E total revenue to decrease by 11%/8% YoY/QoQ to RMB6.62bn, 8% below Bloomberg consensus estimate, mainly due to: 1) delay of certain TV dramas; 2) weaker-than-expected performance-based ad business amid soft sentiment; and 3) the decline in content distribution revenue.</li><li>That said, we expect non-GAAP operating profit of RMB26mn in 2Q25E, which is largely in line with our previous expectation, as the company has maintained prudent control in content costs and opex.</li><li>iQiyi continues to invest in mini dramas and has achieved early success in certain self-produced mini dramas, but it still takes time for mini dramas to make meaningful revenue contribution, in our view. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We expect iQiyi 2Q25E total revenue to decrease by 11%/8% YoY/QoQ to RMB6.62bn, 8% below Bloomberg consensus estimate, mainly due to: 1) delay of certain TV dramas; 2) weaker-than-expected performance-based ad business amid soft sentiment; and 3) the decline in content distribution revenue.That said, we expect non-GAAP operating profit of RMB26mn in 2Q25E, which is largely in line with our previous expectation, as the company has maintained prudent control in content costs and opex.iQiyi continues to invest in mini dramas and has achieved early success in certain self-produced mini dramas, but it still takes time for mini dramas to make meaningful revenue contribution, in our view. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

IQIYI (IQ US) - 2Q25E Preview: Total Revenue Under Pressure but Earnings Outlook Intact

<ul><li>iQiyi announced 1Q25 results: total revenue declined by 9% YoY but grew by 9% QoQ to RMB7.19bn, in line with Bloomberg consensus estimate; non-GAAP operating income was down by 58% YoY but recovered by 13% QoQ to RMB459mn, also in line with the consensus estimate.</li><li>Looking ahead in 2Q25E, we model total revenue to be largely flat QoQ, but non-GAAP OPM to decline QoQ, as the company has stepped up investment in content ecosystem and micro-drama user acquisition.</li><li>We expect investment in micro dramas to impact margins in the short term, but in the long term, it will complement iQiyi content ecosystem and generate incremental monetization opportunities. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

iQiyi announced 1Q25 results: total revenue declined by 9% YoY but grew by 9% QoQ to RMB7.19bn, in line with Bloomberg consensus estimate; non-GAAP operating income was down by 58% YoY but recovered by 13% QoQ to RMB459mn, also in line with the consensus estimate.Looking ahead in 2Q25E, we model total revenue to be largely flat QoQ, but non-GAAP OPM to decline QoQ, as the company has stepped up investment in content ecosystem and micro-drama user acquisition.We expect investment in micro dramas to impact margins in the short term, but in the long term, it will complement iQiyi content ecosystem and generate incremental monetization opportunities. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

IQIYI (IQ US) - Inline 1Q25 Results; Stepped-Up Content & Marketing Investment Impacts ST Margin

<ul><li>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.</li><li>FY24 total revenue declined by 9% YoY to RMB29.2bn, with non-GAAP operating margin down by 3.8ppt YoY to 8.1% primarily due to operating deleverage and content investment.</li><li>Management saw QoQ recovery of business performance in 1Q25, driven by the launch of several quality drama series. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

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 operating 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. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

IQIYI (IQ US) - Inline 4Q24 Results; Increase Quality Content Supply to Revitalize Business Growth

<ul><li>We expect iQiyi’s 4Q24E total revenue to decline by 14% YoY to RMB6.6bn, largely in line with our previous expectation and consensus.</li><li>The decrease was primarily due to the light content slate in Oct 2024 and the decline in revenue from barter transactions (minor impact on gross profit); but overall content performance started to recover after the launch of several key dramas like Wo Shi Xing Jing in Nov.</li><li>We forecast non-GAAP operating profit to grow by 7% QoQ to RMB395mn in 4Q24E, ahead of our previous expectation (RMB360mn) thanks to the stringent content cost control. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We expect iQiyi’s 4Q24E total revenue to decline by 14% YoY to RMB6.6bn, largely in line with our previous expectation and consensus.The decrease was primarily due to the light content slate in Oct 2024 and the decline in revenue from barter transactions (minor impact on gross profit); but overall content performance started to recover after the launch of several key dramas like Wo Shi Xing Jing in Nov.We forecast non-GAAP operating profit to grow by 7% QoQ to RMB395mn in 4Q24E, ahead of our previous expectation (RMB360mn) thanks to the stringent content cost control. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

IQIYI (IQ US) - Membership and Ad Businesses Remain Under Pressure; Eye on Short-Drama Development

<ul><li>iQiyi reported 3Q24 financial results: total revenue declined by 10% YoY to RMB7.2bn, in line with Bloomberg consensus and our estimate; non-GAAP net income was down by 23% YoY to RMB480mn, ahead of consensus/our estimate of RMB266/426mn primarily due to better-than-expected opex control and foreign exchange gains.</li><li>Looking ahead in 4Q24E, we forecast total revenue to decline by 14% YoY and 8% QoQ, primarily due to the lighter content slate and soft consumption sentiment.</li><li>That said, we expect non-GAAP operating income to be largely flattish QoQ at RMB368mn in 4Q24E, thanks to iQiyi’s prudent cost and opex control. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

iQiyi reported 3Q24 financial results: total revenue declined by 10% YoY to RMB7.2bn, in line with Bloomberg consensus and our estimate; non-GAAP net income was down by 23% YoY to RMB480mn, ahead of consensus/our estimate of RMB266/426mn primarily due to better-than-expected opex control and foreign exchange gains.Looking ahead in 4Q24E, we forecast total revenue to decline by 14% YoY and 8% QoQ, primarily due to the lighter content slate and soft consumption sentiment.That said, we expect non-GAAP operating income to be largely flattish QoQ at RMB368mn in 4Q24E, thanks to iQiyi’s prudent cost and opex control. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

IQIYI (IQ US) - Short-Term Headwind Continues; Strategic Upgrades to Drive Long-Term Growth

China

iQIYI, Inc. offers video entertainment services. The Company provides movies, television dramas, variety shows, and other video contents. iQIYI offers services worldwide.

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iQIYI Inc (IQ US)

IQIYI (IQ US) - 2Q25E Preview: Total Revenue Under Pressure but Earnings Outlook Intact

We lower our target price to US$2.25 based on 13x 3Q25-2Q26E non-GAAP EPS (previous: US$2.45 based on 13x 3Q25-2Q26E non-GAAP EPS). Maintain BUY.

CMB International

IQIYI (IQ US) - Inline 1Q25 Results; Stepped-Up Content & Marketing Investment Impacts ST Margin

The company currently trades at 8x FY26E PE, which still has a safety margin compared to peers in our view. Maintain BUY.

CMB International

IQIYI (IQ US) - Inline 4Q24 Results; Increase Quality Content Supply to Revitalize Business Growth

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.

CMB International

IQIYI (IQ US) - Membership and Ad Businesses Remain Under Pressure; Eye on Short-Drama Development

We expect iQiyi’s 4Q24E total revenue to decline by 14% YoY to RMB6.6bn, largely in line with our previous expectation and consensus.

CMB International

IQIYI (IQ US) - Short-Term Headwind Continues; Strategic Upgrades to Drive Long-Term Growth

iQiyi reported 3Q24 financial results: total revenue declined by 10% YoY to RMB7.2bn, in line with Bloomberg consensus and our estimate

CMB International

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