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

[winston]

vested

Baidu's Stock Is Down Nearly 30% in 2024. Is It a Value Play?

by Leo Sun

Revenue stayed nearly flat at 33.93 billion yuan ($4.67 billion) and missed analysts' expectations by $70 million.

Its adjusted earnings per American depositary share (ADS) dropped 7% to $2.89 but still exceeded the consensus forecast by $0.29.

Forward PE 9.

I wouldn't buy it for four simple reasons:-
1. Baidu's core business is withering
2. Baidu's cloud and AI growth is slowing down
3. Baidu is focusing too much on its margins and buybacks
4. It deserves its discount valuation

Already repurchased $1.2 billion in shares from its $5 billion buyback plan, which it launched last February.

Source: The Motley Fool

https://finance.yahoo.com/news/baidus-s ... 00419.html

[winston]

vested

Key Highlights From Baidu Cloud Intelligence Conference 2024

Baidu Cloud Intelligence Conference 2024 was held on 25-26 September in Beijing.

Baidu upgraded its two key AI infrastructures, Qianfan Large Model Platform 3.0 and AI Computing Platform 4.0, focusing on computing power, LLM, and AI applications.

Meanwhile, the company also enhanced three major AI-native applications including intelligent customer service Keyue, digital human Xiling and code assistant Baidu Comate.

Maintain HOLD with a slightly higher target price of HK$90.00 (US$100.00).

Source: UOBKH

https://39646150.fs1.hubspotusercontent ... (9888%20HK)%20240927.pdf?utm_medium=email&_hsenc=p2ANqtz-_Jsd92YuCtr7MwwkRRwUvPmAhxkjPZuUg04Iuw6nZUo5ovGU_bAKQat1m3Ala5wFsN7JoWxmJSMzUCdjLJrt-5IeuhJw&_hsmi=326528334&utm_content=326528334&utm_source=hs_email

[behappyalways]

Beijing-based Baidu wants to roll out driverless ride-hailing service in Hong Kong, Singapore and the Middle East
https://x.com/JChengWSJ/status/1844181302494556348

[winston]

Baidu's net income declines

Baidu's (9888) non-GAAP net inome fell by 19 percent to 5.89 billion yuan (HK$5.33 billion) in the third quarter.

Adjusted earnings before interest, taxes, depreciation, and amortization in the quarter decreased by 8 percent year-on-year to 8.7 billion yuan.

Revenue fell by 3 percent to 33.6 billion yuan in the third quarter from a year earlier.

Source: The Standard

https://www.thestandard.com.hk/section- ... e-declines

[winston]

vested

3Q24: Earnings Miss on AIGC Investment; Expect Subdued Online Ad Revenue Growth In 4Q24

Baidu’s 3Q24 results came in below expectations.

Revenue grew 3% yoy to Rmb33.6b, in line with consensus estimate.

Gross margin inched down 2ppt yoy to 51.1%, within consensus expectation.

Non-GAAP operating profit was Rmb7b, down 8% yoy, while non-GAAP operating profit margin came in at 21%.

Non-GAAP net profit plummeted 19% yoy to Rmb5.9b, missing consensus estimate by 6%.

Maintain HOLD with an unchanged target price of HK$90.00 (US$100.00).

Source: UOBKH

chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://39646150.fs1.hubspotusercontent-na1.net/hubfs/39646150/Research/Baidu%20Inc%20(9888%20HK)%20241122.pdf?utm_medium=email&_hsenc=p2ANqtz-_gMAsR_kVI39meCVVBhI4fVQuTAmFqsrhJloWu-Wdusgf4dhCpdLP_-Y923zM3zSAv6jOyxEdF6VVsmxn1u6qJ5nlddQ&_hsmi=335149550&utm_content=335149550&utm_source=hs_email

[winston]

vested

<Research>Daiwa Trims BIDU-SW (09888.HK) TP to $115, Expects Cloud Biz Growth to Accelerate in Coming Quarters

BIDU-SW (09888.HK) 's 3Q24 core operating margin beat expectation but has been broadly offset by the weaker-than-expected operating margin of iQIYI, according to the research report released by Daiwa.

Although cloud business growth was modest in 3Q24 due to short-term personal cloud business adjustments, it is believed that cloud business revenue growth will accelerate in 4Q24, and the marginal profit will continue to expand in the coming quarters.

Related News - M Stanley: Baidu (BIDU.US) 3Q Rev. in Line, Earnings Slightly Beat

Due to BIDU-SW's limited recovery in advertising business in the next few quarters, Daiwa lowered its 2024-2026 revenue forecasts for the Group by 0.1-0.4%, and reduced its EPS estimations by 0-3%, Daiwa added.

The broker also trimmed its target price from $128 to $115, with rating reiterated at Buy.

Source: AAStocks Financial News

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

[winston]

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<Research>Nomura Expects Baidu (BIDU.US) 4Q24 Core Rev. to Fall 2% YoY, Non-GAAP Operating Profit to Drop 28%

Baidu (BIDU.US) 's 4Q24 revenue may beat market consensus, but earnings may miss expectations, Nomura issued a research report saying.

The broker forecasted the Group's core revenue to fall 2% YoY, while advertising revenue will drop 8%. Therefore, the broker rated Baidu at Buy, with a target price of US$104.

Moreover, Nomura estimated that Baidu's 4Q24 core non-GAAP operating profit may decrease by 28% YoY to RMB4.5 billion, 17% below market consensus.

Source: AAStocks Financial News

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