Baidu (BIDU), HK 9888; 02 (Nov 22 - Dec 26)

[winston]

not vested

<Research>CMBI Lifts Baidu (BIDU.US) TP to US$132, Rating Buy

BIDU-SW (09888.HK)'s 2Q25 core revenue fell by 2% YoY to RMB26.3 billion, slightly beating expectation, CMBI released a research report saying.

Non-GAAP core operating profit decreased by 37% YoY to RMB4.4 billion, but was 12% higher than anticipated.

Due to a more aggressive-than-expected business transformation plan, the recovery in advertising revenue growth may take longer than expected.

However, new initiatives such as Apollo Go and Baidu Cloud are steadily developing, and are expected to become long-term incremental drivers for revenue and profit growth.

Related News: BIDU-SW 2Q Non-GAAP NP Sinks 35.2% to RMB4.795B, In Line

Therefore, the broker lifted its target price from US$130.3 to US$132, with rating kept at Buy.

Source: AASTOCKS Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

not vested

<Research>Daiwa Cuts BIDU-SW's TP to HKD92, Reiterates Outperform Rating

BIDU-SW (09888.HK), (BIDU.US) 2Q25 core operating profit beat market expectations by 9%, but its online marketing revenue declined by 15% YoY, according to Daiwa's research report.

In contrast, the company's non-online marketing revenue grew by 34% on intelligent cloud revenue.

Daiwa reduced its 2025-26 EPS for BIDU-SW by 1-3%.

It also dropped its target price from HKD93 to HKD92, with an Outperform rating reiterated.

Related News: CMBI Lifts Baidu (BIDU.US) TP to US$132, Rating Buy

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

not vested

Fitch Revises Down BIDU-SW Rating Outlook to Negative

Fitch Ratings revised the Outlook on BIDU-SW (09888.HK)'s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) down to Negative, from Stable, and affirmed the IDRs at A.

Fitch also affirmed the foreign-currency senior unsecured rating at A.

Fitch stated that the negative outlook reflected the sequential slump in Baidu's core search business's market share in the online advertising sector, as it faced pressure from competing platforms.

Meanwhile, the business was challenged by the transition to AI search; and sustained EBITDA growth due to successful monetization of AI products would be key to retain an A rating.

Baidu's core EBITDA and EBITDA margin in 2025 and 2026 were expected to be notably below Fitch's previous expectations and also lower than the actual data from 2021-2024.

Furthermore, the weak profitability of iQIYI (IQ.US), in which Baidu holds a 45% stake, will continue to dampen Baidu's overall performance.

Source: AASTOCKS Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN