20230517-招银国际-Looking_into_2Q23E_rich_pipeline_7页_1mb

Analyst rating for iQIYI is BUY, with a target price of US$86, implying a +56% upside from the current price of US$55. The Q1 2023 results showed strong performance, with revenue up 147% YoY (exceeding consensus by 5%) and adjusted net profit beating estimations by 82%, driven by the breakout hit "The Knockout" and resuming ad growth. For Q2 2023, subs may decline slightly due to seasonal softness but are supported by rich content pipeline, including series like "The Demon Hunter's Romance" and summer holidays. Ads are expected to gradually recover from a low base, with brand and entertainment verticals increasing budgets. The BUY rating is maintained with unchanged FY23-25 earnings forecasts and DCF valuation, but risks include content delays, regulatory changes, and heightened competition.