Baidu (BIDU)

Re: Baidu (BIDU)

Postby winston » Wed Nov 18, 2020 10:47 am

not vested

Baidu Inc (BIDU US) - Riding on the coattails of China’s recovery

Baidu’s revenue increased by 1% YoY to RMB 28.2b (3% above consensus) on the back of an improvement in the Baidu Core.

Non-GAAP PATMI rose 59% YoY to RMB 7.0b, which was 53% above consensus.

Encouragingly, Baidu is guiding for revenue of -1% to 8% YoY in growth for 4Q, which at the mid-point is 3% higher than consensus.

On Baidu Core, many advertising verticals have turned around in 3Q, including healthcare, education, and auto.

In-app advertising, which we note is a growing majority of Baidu's mobile ecosystem revenue, continues to see healthy double-digit growth.

We believe that Baidu will continue to benefit from an improvement in the business environment as China continues to recover from the pandemic.

Baidu also announced that it has entered into agreements to acquire JOYY’s domestic video-based entertainment live streaming business in China (YY Live) for ~US$3.6b in cash.

We agree with management that live streaming can grow across different verticals beyond entertainment while being used by advertisers to connect better with users and improve overall conversion.

Still, we believe that time will be needed to better assess the extent and value of synergies arising from this acquisition. Maintain BUY.

Source: OCBC
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Re: Baidu (BIDU)

Postby winston » Wed Dec 23, 2020 6:47 am

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Baidu, Inc. (BIDU – Get Rating)

Based in Beijing, China, BIDU is a Chinese language internet search provider. China has the world’s largest internet user population, and the company is strategically placed to gain in the near term.

BIDU operates through two segments — Baidu Core which includes search services and transaction services, and iQIYI, which is an online video platform with a content library that includes licensed movies, television series, cartoons, variety shows and other programs.

The company’s top line has increased 8.4% sequentially to $4.2 billion for the third quarter ended September 30, 2020. In the iQIYI segment, its subscribers hit 104.8 million in the third quarter, and membership revenue increased 7% year-over-year. Non-GAAP net income increased 59.3% year-over-year to $1 billion. And non-GAAP earnings per ADS increased 61.4% year-over-year to $3.

Analysts expect BIDU’s revenue to increase 23.9% for the quarter ending March 31, 2021, 6.7% this year, and 15.1% next year. The company’s EPS is expected to increase 25.9% this year, 12.1% next year, and at a rate of 1.4% per annum over the next five years.

BIDU has an impressive earnings surprise history, with the company beating consensus EPS estimates in each of the trailing four quarters.

On December 8, BIDU announced that its board of directors had authorized a change to the company’s 2020 Share Repurchase Program, which is effective through December 31, 2022. It increased the aggregate value of shares that may be repurchased from $3 billion to$4.5 billion.

Also, BIDU entered into definitive agreements with JOYY Inc. (YY) in November. The stock has gained 51.5% over the past year to close yesterday’s trading session at $193.08.

How does BIDU stack up for the POWR Ratings?

A for Trade Grade

A for Buy & Hold Grade

A for Peer Grade

B for Industry Rank

A for Overall POWR Rating

The stock is also ranked #1 of 115 stocks in the China group.

Source: Investing Insights Daily
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Re: Baidu (BIDU)

Postby winston » Thu Jan 14, 2021 12:04 pm

not vested

Baidu Inc (BIDU US) - Patience paying off

We believe that Baidu remains on track to benefit from the recovery in SME ad demand, given that the worst of Covid-19 should be behind us.

Baidu App DAU should exhibit healthy growth, which should in turn lay the foundation for Baidu’s in-app initiatives, including its Smart Mini Programs and Managed Pages, thereby presenting monetization opportunities down the road.

Baidu has also announced that it plans to establish a company to produce intelligent electric vehicles, and that it has entered into a strategic partnership with Geely.

In our view, this could be an important development as it demonstrates Baidu’s desire to find monetization avenues for its autonomous driving technology, now potentially through a hardware-software integration.

At this juncture, we believe that Baidu, through this tie-up, will be able to amass more real-time data, which could allow it to refine and potentially license its autonomous driving solution to other OEMs in the future.

Since we upgraded Baidu to a Buy rating in Nov 2019, the share price has returned ~96% in just over a year.

In our view, market participants increasingly appreciate the recovery in Baidu’s core ad business, as well as its increasing headway into the autonomous driving space where it enjoys sector leadership – these have helped to bolster previously-depressed valuation multiples.

We believe that the next upcoming catalyst could be a potential second listing in Hong Kong, which has been reported by the media.

While this remains speculative, we are not surprised if it should materialize, given the trend of second listings pursued by a number of other Chinese internet companies with ADRs. BUY.

Source: OCBC
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