Baidu (BIDU), HK 9888; 01 (Sep 09 - Oct 22)

[winston]

not vested

Brokers: Baidu Interim Non-GAAP NP May +10%; Focus on Ad Biz, Regulatory Guidance

BIDU-SW (09888.HK) will unveil the interim results this Thursday (12 August).

According to brokers' forecasts as compiled by our reporters, Baidu's 1H21 non-GAAP net profit may range RMB8.422-10.292 billion, up 3.2%-26.1% YoY. The median forecast is RMB9.036 billion, up 10.7% YoY.

Citigroup expected investors to focus on the firm's recent advertising business trend, as well as guidance for tightened internet sector regulation and tax rate in China.

Related NewsUBS: CN Internet Regulation May Last into Yr-end, Sector Yet to Hit Bottom; Restates UW on Dotcoms

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Brokers│2021 Interim Non-GAAP NP (RMB)│YoY change
Daiwa│10.292B│+26.1%
BOCI│9.595B│+17.5%
Credit Suisse│9.182B│+12.5%
Morgan Stanley│9.04B│+10.7%
UBS│9.032B│+10.6%
Citigroup│8.891B│+8.9%
JPMorgan│8.422B│+3.2%

Based on 2020 interim non-GAAP net profit of RMB8.164 billion.

Source: AAStocks Financial News

[winston]

<Research Report>Ratings, TPs on BIDU-SW (09888.HK) (Table)

Brokers│Ratings│TPs (HKD)
Goldman Sachs│Buy│339
Credit Suisse│Outperform│335
Daiwa│Buy│335
BofA Securities│Buy│325
JPMorgan│Overweight│300
DBS│Buy│299
BOCOM International│Buy│266
CCB International│Outperform│254.48
BOC International│Buy│243

Source: AAStocks Financial News

[winston]

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Baidu quarterly results top estimates on ad sales, AI demand

by Eva Mathews

iQIYI, posted a 15% increase in advertising revenue and subscribers grew to 106.2 million by June, on the back of more original content. Total revenue at iQIYI was up 3% at 7.6 billion yuan in the quarter.

Total revenue rose to 31.35 billion yuan (US$4.84 billion) from 26.03 billion yuan.

Source: Reuters

https://www.theedgemarkets.com/article/ ... -ai-demand

[winston]

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<Results Ann>BIDU-SW 2Q Non-GAAP NP Up 5% to RMB5.36B, In Line; Herman Yu Appointed as CSO

BIDU-SW (09888.HK) announced the second quarter results ended June 2021.

The non-GAAP net income rose 5% YoY to RMB5.359 billion, in line with the broker forecast as compiled by our reporters of RMB4.125-5.995 billion, and above the median forecast of RMB4.739 billion.

Adjusted EBITDA for the second quarter was RMB7.295 billion, up 4% YoY.

Total revenues added 20% YoY to RMB31.35 billion.

Source: AAStocks Financial News

[winston]

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Brokers' Ratings, TPs, Views on BIDU-SW (09888.HK) Post Interim Result (Table)

Brokers' ratings and TPs for BIDU-SW (09888.HK) are as follows:

Brokers│Ratings│TPs (HK$)
Credit Suisse│Outperform│335->318
Jefferies│Buy│360->281

BIDU-SW 2Q Non-GAAP NP Up 5% to RMB5.36B, In Line

Brokers' ratings and TPs for Baidu, Inc. (BIDU.US) are as follows:

Brokers│Ratings│TPs (UB$)
Credit Suisse│Outperform│346->328
Jefferies│Buy│371->289
Citigroup│Buy│283->264
UBS│Buy│250
Morgan Stanley│Equalweight│230
Nomura│Neutral│217->187

Brokers│Views
Credit Suisse│Covid may affect 2H21 ad revenue despite strong cloud biz momentum
Jefferies│Covid not to affect long-term biz outlook
Citigroup│facing adverse macro in near term
UBS│2Q result, QoQ revenue guidance in-line; price may wane lacking catalyst
Morgan Stanley│2Q revenue in-line
Nomura│2Q result beats, 3Q revenue forecast misses

Source: AAStocks Financial News

[winston]

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Baidu Stock Falls After Second-Quarter Sales Beat But Cautious Outlook

Baidu reports quarterly revenue that rings in above Wall Street estimates but provides a more cautious outlook on future sales expectations.

by M. COREY GOLDMAN

Baidu swung to a net loss of 583 million yuan in the second quarter, after marking down the value of its stake in Kuaishou Technology.

Near term, Baidu is still counting on search and other content offerings like live-streams and web shows to fuel its advertising platform, which contributed roughly 64% of sales for the first quarter.

Source: The Street

https://www.thestreet.com/investing/ear ... %2BOutlook

[winston]

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Baidu swings to net loss of 583m yuan, adopts conservative view of current quarter

Revenue for the three months ended June climbed 20% from a year earlier to 31.35 billion yuan (US$4.8 billion), compared with the 30.9 billion yuan of estimates.

Baidu swung to a net loss of 583 million yuan in the second quarter, after marking down the value of its stake in Kuaishou Technology.

Shares of the livestreaming giant sank 28% in the quarter and are currently trading below its initial public offering price, as China’s tech crackdown expands beyond e-commerce and antitrust to online content.

On Thursday, executives fielded questions on regulatory uncertainties from data security to the scrapping of tax incentives.

Strength in artificial intelligence, cloud and other new business segments may remain through 2H and beyond after 2Q’s 80% year-on-year growth, but at just 16% of total revenue, the heavy investment required to sustain this expansion may keep weighing on profits.

Source: The Standard

https://www.thestandard.com.hk/breaking ... nt-quarter

[winston]

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Baidu Inc (9888 HK / BIDU US) - Strong cloud growth though marred by near-term Covid-19 impact

Baidu’s 2Q21 results came in above expectations.

Total revenue increased by 20% YoY to RMB31.4b, which was ~1% above consensus and above the mid-point of the previous guidance range.

Non-GAAP net income grew by 5% YoY to RMB5.4b, coming in above consensus by 17%.

Baidu is guiding for 3Q21 revenue to be between RMB30.6b to RB33.5b (or a growth rate of 8%-19% YoY), with the midpoint of RMB32.05b coming in ~3% below consensus.

Softer 3Q21 guidance comes on the back of the new wave of Covid-19 cases in China, the impact of which has already been seen on Baidu’s advertising business in 3Q21, especially in the travel vertical.

We also believe that there could be some impact arising from recent regulatory headwinds in K-12 education, though impact from this is likely to be manageable.

On cloud, strong growth has been registered as enterprise customers look to undergo transformation by leveraging AI and strengthen their leadership position across verticals such as internet media, financial services, energy and manufacturing.

This is on top of urban cities looking to adopt Apollo ACE smart transportation.

On intelligent driving, we note that management expects the cost structure of its robotaxi business to be lower than manned vehicles by 2025.

Management remains confident of its ability to cope with the regulatory environment in terms of data security and user privacy, and is unaware of abrupt developments that can adversely impact their business operations at this juncture.

All-considered, we adjust our earnings estimates downwards, and incorporate conservative assumptions for the core advertising business and latest market cap for iQIYI and Trip.com. BUY.

Source: OCBC

[winston]

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Baidu Inc (9888 HK/BIDU US): Pandemic resurgence clouds revenue visibility [BUY, TP HK$236.00 / BUY, TP US$243.00]

2Q21 results above consensus with strong growth in new initiative businesses

Mid-point of 3Q21 revenue guidance slightly below consensus due to COVID resurgence

Trimmed FY21/22F revenue by 7%, resulting 16%/6% decline in non-GAAP net profit

Reiterate BUY rating with revised TP of HK$236 on positive outlook in cloud and AI businesses

Source: DBS

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BIDU-SW Launches Unmanned Vehicle Mobility Service Platform 'Luobo Kuaipao'

BIDU-SW (09888.HK)'s founder and CEO Robin Li announced today to launch the company's unmanned vehicle mobility service platform "Luobo Kuaipao" (translation of "蘿蔔快跑"), in hope to further promote driverless mobility service to the general public.

Li remarked that the company expects the service to cover 30 cities within the coming three years.

BIDU-SW Interim NP Soars 5.9x to RMB25.07B, Trailing Forecast

Source: AAStocks Financial News