20251119-招银国际-Inline_3Q25_results_expect_revenue_and_margin_recovery_in_4Q25E_5页_1007kb

iQIYI's 3Q25 results showed total revenue declining by 8% YoY to RMB6.68bn, aligning with market expectations, while non-GAAP net loss was RMB148mn due to content investments and operating inefficiencies. For 4Q25, revenue is expected to recover by 2% YoY, driven by membership business growth supported by popular dramas and favorable policies.

Key factors include the expected recovery of membership services revenue, overseas expansion, and advancements in micro dramas and AI, which are improving content efficiency and user engagement. Margins are projected to bottom out in Q3 and recover in Q4 and FY26, with the company's BUY rating maintained.

Financial projections reduce non-GAAP operating profit forecasts for FY25-27, while valuation targets a US$2.65 share price based on 18x 2026E EPS, reflecting competitive pressures and a discount to sector multiples.