China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

[iQIYI, Lnc. (IQ US) Target Price Change]: Reiterate SELL for Increasing Competition

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[iQIYI, Lnc. (IQ US, BUY, TP US$6.25) Review]: Ads Revenue Will Continue to Have Fair Growth

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Gravity Works As WeWork Doesn't; Now Plan B

China/Asia TMT

Shawn Yang

Equity Bottom-Up

<ul>
<li>IQIYI’s 4Q22 top line was in line with cons., while non-GAAP net income beat cons by 176%, due to reduction of content cost to a historical low. </li>
<li>We raise its 2023 revenue forecasts due to macro recovery, but expect its content cost to rebound to cope with market competition.</li>
<li>Due to long-standing industry challenges, we maintain SELL but raise TP to reflect macro rebound. Our TP is US$ 5.40, which implies 18.4X PE in 2023.</li>
</ul>


IQIYI’s 4Q22 top line was in line with cons., while non-GAAP net income beat cons by 176%, due to reduction of content cost to a historical low. 
We raise its 2023 revenue forecasts due to macro recovery, but expect its content cost to rebound to cope with market competition.
Due to long-standing industry challenges, we maintain SELL but raise TP to reflect macro rebound. Our TP is US$ 5.40, which implies 18.4X PE in 2023.


[iQIYI, Lnc. (IQ US,) Target Price Change]: Short-Term Catalysts Not to Solve Long-Term Challenges

iQIYI Inc

[iQIYI, Lnc. (IQ US,) Target Price Change]: Short-Term Catalysts Not to Solve Long-Term Challenges