iQiyi - in the news

IQ integrating financial services into their platform. More recent news further below:

iQIYI Launches “Change Plus” Online Wallet to Integrate Entertainment and Financial Services https://seekingalpha.com/pr/17187634?source=ansh $IQ

iQIYI’s “Change Plus” online wallet allows users to enjoy new membership benefits. Users who deposit a certain amount of money on iQIYI can enjoy all of iQIYI’s VIP membership services and can deposit or withdraw their money at any time they want. They will be able to enjoy the benefits of VIP membership for as long as they keep money saved on “Change Plus”.

Liu Wenfeng, chief technology officer of iQIYI, said: “iQIYI’s analysis of big data provides accurate insights into the behavior and preferences of consumers, helping integrate finance services with our entertainment platform and expand our user base to include high-net-worth members.”


Also saw this Roku article, which name-dropped IQ side by side with Netflix. I think this is notable as the more mainstream attention hits IQ, the more it can ride that momentum and be given a “netflix-like” valuation.

https://finance.yahoo.com/news/roku-inc-gearing-massive-brea…
Valuing Roku Stock
So what’s up with Roku the company? Given how hot streaming names like Netflix, Inc. (NASDAQ:NFLX) and iQiYi, Inc (NASDAQ:IQ) have been — the latter of which is being dubbed the Netflix of China — it’s no surprise to see Roku stock heating up.


iQIYI Pictures’ “Blue Amber” Shortlisted for Awards at the 2018 Shanghai International Film Festival

iQIYI today announced that its in-house produced film “Blue Amber” has been shortlisted for two ‘Asian New Talent’ awards at the prestigious Shanghai International Film Festival (SIFF), in the categories of ‘Best Film’ and ‘Best Cinematography’.

The motion picture was produced by iQIYI’s film division, iQIYI Pictures, as part of the company’s program to produce and distribute films by first-time directors. The success is a recognition of iQIYI’s innovative model which seeks to combine the strength of its internet platform with film content of unmatched quality.

“Blue Amber” tells a story of a widow who takes financial revenge on the family involved in the killing of her husband. It was adapted from the novella “Two Hundred and Forty Months of Life” by esteemed Chinese author Xu Yigua and was written and directed by Zhou Jie, a rising young star in the world of Chinese cinema. “Blue Amber” is Zhou Jie’s debut film and was developed through iQIYI’s ‘Plan 17’ , an initiative designed to cultivate new and exciting directors in China. The film script was awarded “Best Film Investment Project” in the “Young Directors” category at the 2016 Shanghai International Film Festival.

http://pdf.reuters.com/htmlnews/htmlnews.asp?i=43059c3bf0e37…

https://finance.yahoo.com/news/iqiyis-newly-launched-smart-t…

announced the launch of “QIYI Guo Kids Edition”, a video streaming app for smart TVs designed for children up to the age of 12. Developed in collaboration with Galaxy Internet TV, the app utilizes artificial intelligence to provide tailored recommendations for its young users, while giving parents the ability to closely monitor and adjust content and time control settings. QIYI Guo also provides paid premium children’s content to meet the strong demand for safe and educational kid-friendly programs.

“With the launch of QIYI Guo Kids Edition, iQIYI has become the first video platform to provide premium paid content for children in China. This represents an important step forward for us as we explore opportunities in the paid-for children’s content market,” said Duan Youqiao, senior vice president of iQIYI.

As an important step to optimize the user experience, iQIYI takes into account differences in the viewing preferences of children. As such, QIYI Guo Kids Edition is free of advertisements and provides spoken instructions to ensure ease of use.


info from older 6/1 post:

IQ wants to be disney…not just next netflix.

Check out 3 recent announcements. My sense is their mgmt will do a good job putting PR pieces in the news to keep momentum going in between ERs.

iQIYI’s “Hot-Blood Dance Crew” Becomes First Chinese Online Premium Variety Show Distributed in the Americas https://seekingalpha.com/pr/17179803?source=ansh $IQ

iQiyi has licensed a show here in the west.

And they have that show licensed on the same OTT hong kong station that TTD ceo jeff green specifically called out on last ER conf call.

iQIYI also announced that the streaming rights to “Hot-Blood Dance Crew” in Hong Kong have been purchased by TVB’s new media OTT platform


iQIYI Literature Signs Top Online Novelists to Lead Development of Original Content https://seekingalpha.com/pr/17175119?source=ansh $IQ

iQIYI Literature has signed exclusive agreements with four of China’s top online novelists – Tang Shao, Nan Pai San Shu, Fresh Guoguo, and Shui Qian Cheng – to become iQIYI Literature “Chief Structure Officers”, leading a team of star writers to guide the development of iQIYI Literature.


iQIYI Opens First Offline On-Demand Movie Theater https://seekingalpha.com/pr/17168670?source=ansh $IQ

iQIYI will work to bring Yuke movie theaters to first- and second-tier cities throughout China, providing more consumers with a high-quality, on-demand entertainment experience.

Yuke movie theaters combine the convenience of on-demand service with the high quality audio-visual environment of traditional cinemas. Users are free to select the time and location of viewing, as well as content from iQIYI’s online movie library

10 Likes

Financial services? What, is every Chinese company now an “everything” company? Actually, now that I think about it, so are US companies. Strange times we are living in.

Peace,
Dana

I bought small amount of IQ for $18 and change on April 26 2018. It is up 75% today at $32 and change.

Wish I had bought more. Wonder if it is too late.

The cap for iq is still too low.

Their 2 year growth rate is phenomenal 825 m to 2.5 b. Iq is a monster and these r early days.

No it’s not too late.

1 Like

They are forecasting 900m for q2.

I am guesstimating close to 4b for 2018. Just depends what p/s you think market will give it. Nflx at 12. So if IQ gets 8on 4b, that is 32b mkt cap.

Currently at 24b.

1 Like

The cap for iq is still too low.

Their 2 year growth rate is phenomenal 825 m to 2.5 b. Iq is a monster and these r early days.

No it’s not too late. – Rizz

Just a perspective to add to what DreamerDad wrote…

If (BIG IF) IQ ever realizes their aspiration to be any sort of “Chinese Disney”, we’re currently in the top of the 1st inning. Just barely started.

Personally, I have very little confidence they’ll reach those aspirations… and I merely hope they continue to do fairly well as “just another Chinese Netflix”. That will still be a home run at this rate.

We bought at ~$20/share, currently ~2% of our portfolio. I mention that just so you don’t assume I’m just flinging poo at the company in an assumed role as a hater. To the contrary, I’m somewhat optimistic… just cautiously optimistic. :slight_smile:

Rob
Rule Breaker / Market Pass Home Fool & STMP/MTH Maintenance Coverage Fool
He is no fool who gives what he cannot keep to gain what he cannot lose.

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Found helpful tmf article with 2014, 2015, and 2016 iQiyi revenues for reference:

https://www.google.com/amp/s/www.fool.com/amp/investing/2017…

And 2017 mentioned here:
https://technode.com/2018/02/28/iqiyi-ipo-filing-numbers/

2014 463m
2015 817m
2016 1.6b
2017 2.7b
2018 4b guess via Dreamer

2018 q1 778m
2018 q2 forecast given was approx 950m

In q1 2018 revenues were about 50/50 between ad revenue and subscriptions. But ad revenue grew 50% while sub rev grew 60%.

Based on jd.com partnership announcement, they have 61m subscribers.
https://www.prnewswire.com/news-releases/jdcom-and-iqiyi-joi…

Supposedlyabout $3 per month sub fee. $180m/month or $540m/Q. Ad rev in q1 was 336m and sub rev was 334m.

So we know they are at 876m if no ad rev growth, which is unlikely.

What is China TAM?

https://www.google.com/amp/m.scmp.com/tech/article/2137870/c…
“Compared with the US, China still has plenty of room to grow in a country with a population of about 1.4 billion and 751 million internet users. The proportion of internet users who pay for video content has increased more than 10 times in four years, rising to 13.2 per cent in 2016, and is expected to further increase to 40 per cent in 2022, iResearch said. By comparison, Netflix’s US-based paying members represented around 28.1 per cent of total internet video users in the country as of the end of 2016.”

So lets do some public school math. Can iQiyi, which is growing rapidly and added 10m new subs in Jan and Feb (so 5m added per month) double/triple their subs? Seems very plausible.

180m subs x $3/month = $540m sub rev per month or 1.6b/Q. Which would be $6b/year.

Plus assume their ad rev at least stays at $1.3b current runrate.

That is total of 7.3b/year pace in forward-looking revenues that i feel they could reach at end of 2019.

Give 7 P/S = $50B MKT CAP.

Dreamer

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Dreamer:

Any worries that this is a Chinese company, and one can never be too sure about the numbers? I have a 5% position in IQ and will probably add a little more this week if we get a pullback. I know Saul refuses to invest in Chinese companies, but curious about your perspective.

Thanks,
John

There is risk with any company.

Unless someone can prove being corrupt is a chinese gene defect and/or somehow US execs/companies are unable to be corrupt.

Enron, Madoff, Lernout Hauspie, Theranos, Cyber-Care, Lance Armstrong…etc
https://list25.com/25-biggest-corporate-scandals-ever/

The companies I like have investment/partnerships with the largest Chinese titans, so at least I feel i have local eyes on the company in question who are also motivated for them to be legit and succeed.

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Also - TMF has recommended various chinese companies for in certain sub services and they write articles on them all the time too.

The same question could be posed to them.

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You cannot be serious. Chinese corruption is not a matter of genetics but (among other things) state involvement. The Communist party is always your partner and not necessarily a nice one. As for being reassured about your investments’ ‘partnerships’ with Chinese companies, they probably have no choice. And once your companies have been useful in imparting what information their hosts seek, they may turn out to be dispensable and redundant.

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You cannot be serious.


Chill McEnroe.
I’ve noted in your posts a tendency to argue or point out the negatives. Havent seen much in the way of stock suggestions.

The Chinese government must be an incredibly well-tuned and efficient machine to be so engrained within every public company China has listed.

If only the US could impose such rigor and atructure on the Post Office or DMV…imagine the decrease on the waiting lines.

Dont invest in companies from China then. I really couldnt care less. If I listened blindly to posters on TMF i would have missed out on the majority of my gains this year on TTD and Chinese stocks.

Everyone should be an adult and make their own decisions.

Last time i checked, i can state an opinion on this site. You are welcome to disagree with it, just as I am welcome to look past lazily pontificated absolute statements of opinion from others.

Hth,
Dreamer

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Chill McEnroe.
I’ve noted in your posts a tendency to argue or point out the negatives. Havent seen much in the way of stock suggestions.

Geesh Dreamer…why dont you just stay with us over at the NPI where the discourse is more civilized? :joy:

I really do get the constant angst from many posters here about investing in China…most of these posters were badly burned investing in vapor…not looking at each investment with the same diligence as a US company…instead relying on the Chinese pitch of being the next NFLX, GOOG. AMZN, SHOP, etc.

However, to ignore what will become the largest economy in the world in the next few years because of prior ill advised investment dreams…just doesn’t seem wise.

Caution…yes…extra caution…yes…but blanket statements…no.

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Dealing quickly with your first points Dreamer, some valid:

  1. Apologies, the McEnroe bit was rude and unnecessary.

  2. Fair comment but negativity - may I say a dose of realism? - is often sorely needed here, and elsewhere on TMF. Fair comment again: here are my current holdings relevant to this board: AYX NTNX SHOP TWLO WIX GWRE HQY TEAM TTD VRNS. These are the ones I like, because I anticipate good enough cash flows as well as hoping for continuing growth. (I also hold MSFT and ADBE in the software space which have turned out to be remarkable investments.) Are they suggestions? No, because I am not buying more of any of them today but they are suggestions for a look and most are well-known here already. There are two others I want to buy. I rarely post suggestions because I am invariably trying to buy more. Put me down as selfishly anxious not to increase the competition!

  3. The Chinese govt. absolutely is an incredibly well-tuned and efficient machine, engraining itself everywhere. That is why, for example, it only has to raise an eyebrow at traditional present-giving to collapse luxury brand sales around the world. Your dismissal was why I felt your assertion needed correcting.

  4. May I take your other comments to be justified reactions to my unjustified McEnroe one?

What a wonderful commentator he is, by the way, on the tennis scene. Looking forward to hearing his remarks as usual from Wimbledon - coming up soon!

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IQ in the news. Again. They have been consistently churning out PR to continue growing their brand.

Here is TMF saying “check this out!”: https://www.fool.com/investing/2018/06/14/why-iqiyi-stock-ga…

Here they announce board changes, which include the CEO of CTrip and the head of Baidu’s AI division:
https://globenewswire.com/news-release/2018/06/14/1524475/0/…

Finally, here we have iQiyi leading an AI contest utilizing 200-1000 teams across China universities and research institutes:
https://www.prnewswire.com/news-releases/iqiyi-launches-ai-c…
“In this unprecedented initiative, iQIYI will provide participants of the competition with the world’s largest data set of celebrity video materials (iQIYI-VID) containing over 500,000 video segments of 5,000 celebrities from the world of entertainment, totaling over 1,000 hours.”


iQIYI’s “Hot-Blood Dance Crew” Smashes Industry Records for Total Advertising Revenue https://seekingalpha.com/pr/17190493?source=ansh $IQ

The show has been one of this year’s most followed and discussed Chinese programs, attracting more than 1.8 billion views as the final episode was shown on iQIYI’s platform last weekend, with topics relating to the show on Chinese microblogging site Sina Weibo receiving over 20 billion views.

IQ integrating financial services into their platform. More recent news further below:

iQIYI Launches “Change Plus” Online Wallet to Integrate Entertainment and Financial Services https://seekingalpha.com/pr/17187634?source=ansh $IQ

iQIYI’s “Change Plus” online wallet allows users to enjoy new membership benefits. Users who deposit a certain amount of money on iQIYI can enjoy all of iQIYI’s VIP membership services and can deposit or withdraw their money at any time they want. They will be able to enjoy the benefits of VIP membership for as long as they keep money saved on “Change Plus”.

Liu Wenfeng, chief technology officer of iQIYI, said: “iQIYI’s analysis of big data provides accurate insights into the behavior and preferences of consumers, helping integrate finance services with our entertainment platform and expand our user base to include high-net-worth members.”


Also saw this Roku article, which name-dropped IQ side by side with Netflix. I think this is notable as the more mainstream attention hits IQ, the more it can ride that momentum and be given a “netflix-like” valuation.

https://finance.yahoo.com/news/roku-inc-gearing-massive-brea…
Valuing Roku Stock
So what’s up with Roku the company? Given how hot streaming names like Netflix, Inc. (NASDAQ:NFLX) and iQiYi, Inc (NASDAQ:IQ) have been — the latter of which is being dubbed the Netflix of China — it’s no surprise to see Roku stock heating up.


iQIYI Pictures’ “Blue Amber” Shortlisted for Awards at the 2018 Shanghai International Film Festival

iQIYI today announced that its in-house produced film “Blue Amber” has been shortlisted for two ‘Asian New Talent’ awards at the prestigious Shanghai International Film Festival (SIFF), in the categories of ‘Best Film’ and ‘Best Cinematography’.

The motion picture was produced by iQIYI’s film division, iQIYI Pictures, as part of the company’s program to produce and distribute films by first-time directors. The success is a recognition of iQIYI’s innovative model which seeks to combine the strength of its internet platform with film content of unmatched quality.

“Blue Amber” tells a story of a widow who takes financial revenge on the family involved in the killing of her husband. It was adapted from the novella “Two Hundred and Forty Months of Life” by esteemed Chinese author Xu Yigua and was written and directed by Zhou Jie, a rising young star in the world of Chinese cinema. “Blue Amber” is Zhou Jie’s debut film and was developed through iQIYI’s ‘Plan 17’ , an initiative designed to cultivate new and exciting directors in China. The film script was awarded “Best Film Investment Project” in the “Young Directors” category at the 2016 Shanghai International Film Festival.

http://pdf.reuters.com/htmlnews/htmlnews.asp?i=43059c3bf0e37…

https://finance.yahoo.com/news/iqiyis-newly-launched-smart-t…

announced the launch of “QIYI Guo Kids Edition”, a video streaming app for smart TVs designed for children up to the age of 12. Developed in collaboration with Galaxy Internet TV, the app utilizes artificial intelligence to provide tailored recommendations for its young users, while giving parents the ability to closely monitor and adjust content and time control settings. QIYI Guo also provides paid premium children’s content to meet the strong demand for safe and educational kid-friendly programs.

“With the launch of QIYI Guo Kids Edition, iQIYI has become the first video platform to provide premium paid content for children in China. This represents an important step forward for us as we explore opportunities in the paid-for children’s content market,” said Duan Youqiao, senior vice president of iQIYI.

As an important step to optimize the user experience, iQIYI takes into account differences in the viewing preferences of children. As such, QIYI Guo Kids Edition is free of advertisements and provides spoken instructions to ensure ease of use.


info from older 6/1 post:

IQ wants to be disney…not just next netflix.

Check out 3 recent announcements. My sense is their mgmt will do a good job putting PR pieces in the news to keep momentum going in between ERs.

iQIYI’s “Hot-Blood Dance Crew” Becomes First Chinese Online Premium Variety Show Distributed in the Americas https://seekingalpha.com/pr/17179803?source=ansh $IQ

iQiyi has licensed a show here in the west.

And they have that show licensed on the same OTT hong kong station that TTD ceo jeff green specifically called out on last ER conf call.

iQIYI also announced that the streaming rights to “Hot-Blood Dance Crew” in Hong Kong have been purchased by TVB’s new media OTT platform


iQIYI Literature Signs Top Online Novelists to Lead Development of Original Content https://seekingalpha.com/pr/17175119?source=ansh $IQ

iQIYI Literature has signed exclusive agreements with four of China’s top online novelists – Tang Shao, Nan Pai San Shu, Fresh Guoguo, and Shui Qian Cheng – to become iQIYI Literature “Chief Structure Officers”, leading a team of star writers to guide the development of iQIYI Literature.


iQIYI Opens First Offline On-Demand Movie Theater https://seekingalpha.com/pr/17168670?source=ansh $IQ

iQIYI will work to bring Yuke movie theaters to first- and second-tier cities throughout China, providing more consumers with a high-quality, on-demand entertainment experience.

Yuke movie theaters combine the convenience of on-demand service with the high quality audio-visual environment of traditional cinemas. Users are free to select the time and location of viewing, as well as content from iQIYI’s online movie library

5 Likes