InvestIdeas

vested

Baidu Inc (9888 HK)
Search Giant Transforming To Leader In AI+Smart Driving

Baidu ranked No. 1 in China’s AI cloud service industry in 2021 on the back of its
leading AI technologies, according to IDC.

We like Baidu’s unique position in the AI+cloud industry and its leading intelligent driving business unit, which are expected to unlock stock value in the medium to long term, along with a gradual recovery in Baidu's core advertising business.

Initiate coverage with BUY. Target price: HK$151.00.

Source: UOBKH

https://research.uobkayhian.com/content ... f2a89602f1

vested

Baidu Posts Surprise Sales Gain as Investors Eye Turnaround

by Zheping Huang

Sales rose slightly to 32.5 billion yuan ($4.6 billion) in the September quarter, beating expectations for 31.8 billion yuan.

The company posted a net loss of 146 million yuan in the quarter just ended after taking a fair value loss several times that amount on its investments.

Source: Bloomberg

https://finance.yahoo.com/news/baidu-po ... 49695.html

vested

Baidu sees surge in autonomous taxi usage, boding well for driverless technology in the world’s largest EV market

Last November, Baidu and Pony AI became the first two mainland firms to be allowed to charge passengers using their autonomous taxis

by Daniel Ren

Apollo Go robotaxi division completed 474,000 rides between July and September, compared to 287,000 rides recorded in the previous quarter.

The number of rides in the third quarter represented a year-on-year leap of 311 per cent.

Each autonomous taxi in the first-tier cities of Beijing, Shanghai, and Guangzhou completed 15 rides per day.

Source: SCMP

https://www.scmp.com/business/china-bus ... -ev-market

vested

Baidu Inc (9888 HK / BIDU US)

3Q22 non-GAAP net profit increased by 16%, above market expectations

Revenue increased by 2% y-o-y to Rmb33bn, slightly higher than market expectations

Non-online marketing revenue rose by 25% to Rmb7bn, driven by cloud and other AI-powered businesses.

Non-GAAP net profit increased by 16% to Rmb5.9bn, above market expectations thanks to stronger revenue growth and cost optimisation.

Do we expect its online market revenue growth momentum to improve further?

Source: DBS

Baidu Robin Li Foresees Apollo Go to Generate Sizeable Profit by 2024

BIDU-SW (09888.HK) (BIDU.US)'s Apollo Go was anticipated to generate sizeable profit by 2024, said the group's founder, chairman and CEO Robin Li at the result press conference, as cited by Chinese media.

The company will further scale up the application of autonomous-driving technology and endeavor to reduce hardware and vehicle-production costs, Li added.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... t-news/HK6

vested

Baidu Inc (9888 HK / BIDU US) - Muted near-term advertising outlook; look for recovery in next few quarters

As with its peers, Baidu’s 3Q22 results beat mainly due to tight cost control by the company.

Core advertising business is still experiencing weak trends, while its new businesses such as AI Cloud is driving growth momentum in the near-term.

Margin improvement was significant in this quarter, growing 730 basis points (bps) year-on-year (YoY) and 360 bps quarter-on-quarter (QoQ), which led to a 10% beat on net income.

Advertising revenue trends have declined in Nov 2022 after improving in Oct 2022 as the resurgence of Covid-19 in major cities such as Guangzhou and Beijing have restricted economic activities again.

Management highlighted that Baidu is well-positioned to benefit from a macro recovery as many of its advertisers are small medium enterprises (SMEs) that have been badly affected by Covid-19 control measures and will benefit from a relaxation of these measures eventually.

Management also shared positive growth and profitability metrics on the AI Cloud business and sees this as a significant growth driver for the company going forward.

Following increases to our estimates in FY23 and FY24, our FV rises from HKD176 to HKD184 (9888 HK) / USD181 to USD190 (BIDU US). BUY.

Source: OCBC

vested

Baidu Inc (9888 HK)
3Q22: Above Expectations; Macro Uncertainties Persist

Baidu’s 3Q22 earnings came in above expectations.

Revenue grew 2% yoy to Rmb32.5b, 2% above the street’s estimate.

Gross margin was flat yoy at 50%, in line with our and consensus expectations.

Non-GAAP operating profit was Rmb7.2b, up 53% yoy, while non-GAAP operating profit margin came in at 22%, slightly better than our estimate.

Non-GAAP net profit increased 16% yoy to Rmb5.9b due to prudent cost control, 6.9% above consensus estimate.

Maintain BUY. Target price: HK$151.00.

Source: UOBKH

https://research.uobkayhian.com/content ... ef146cdf4a

not vested

BIDU-SW Apollo Clears Smart-driving Data-desensitization Product Testing

BIDU-SW (09888.HK) expressed that a smart-driving video and image anonymization processing system developed by its subsidiary Apollo, has cleared the test on "Automobile Video and Image Data-desensitization Technology Requirement and Method" in the Shanghai Motor Vehicle Inspection Center, becoming the first Chinese smart-driving supplier to pass the test.

The passage of the test illustrated that relevant Apollo products, have fulfilled relevant technical requirements and are equipped with industry-leading capability on ensuring data security, the company remarked.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... t-news/HK6

not vested

Cabs without a chatty — or any — driver are expanding in China

Racked up more than 1.4 million public journeys, and is expanding a network that already covers dozens of square miles across 10 key cities that also include Wuhan and Chongqing.

General Motors Co’s fast-expanding robotaxi unit Cruise and California-based Waymo.

Sleek SUV that’s slated to launch next year.

Using Baidu’s white-and-green app to book a ride on a recent afternoon had a driverless cab arrive within minutes, and the fare, which included a promotional discount, was low: 4 yuan (65 cents) for a 10-minute journey.

For China’s operators, however, there is a potential hurdle ahead. In October, the US imposed tighter controls on exports of some chips and chipmaking equipment.

Baidu has nearly triple the road test miles of its key domestic competitors.

It’s preparing to ramp up production of the Apollo lineup, and has won contracts with cities like Guangzhou to build digital infrastructure for city streets.

Source: Bloomberg

https://www.theedgemarkets.com/article/ ... ding-china

BIDU(9888)

Analysis：

Baidu is a leading AI company with a strong internet foundation.

For the third quarter ended September 30, revenue from Baidu Core amounted to RMB 25.2 billion, increasing 2% YoY.

Revenue from iQIYI amounted to RMB 7.5 billion, decreasing 2% YoY.

Cost of revenues amounted to RMB 16.3 billion, increasing 1% YoY.

Selling, general and administrative expenses amounted to RMB 5.2 billion, decreasing 29% YoY.

Research and development expense amounted to RMB 5.8 billion, decreasing 7% YoY.

Operating income amounted to RMB 5.3 billion, increase 130% YoY.

The recent Central Economic Conference emphasized supporting platform companies in leading development, creating jobs, and showing their talents in international competition, which is changing the previous rhetoric.

It is expected that there will be policies favorable to the new economy and platform companies to boost the China economy.

In addition to the concept of platform economy such as Baidu search engine and iQIYI, the company also has high-tech in intelligent driving, which is expected to be supported by national policies.

Strategy：
Buy-in Price: $112.60, Target Price: $123.70, Cut Loss Price: $105.20

Source: Phillips