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]

vested

<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

[winston]

4Q24 Preview: Online Ad Weakness Persists; Poised For Re-accelerated AI Cloud Revenue Growth

Baidu’s 4Q24 results will be released on 18 Feb 25.

We forecast 4Q24 revenue dropping 4% yoy, mainly dampened by a subdued macro backdrop.

Management expects online ad revenue to drop at a high single digit yoy in 4Q24, deepening the decline from 3Q24.

However, AI Cloud revenue growth is guided to ramp up in 4Q24 and maintain its double-digit growth in 2025, with GenAI now accounting for 11% of cloud revenue.

Maintain HOLD with a lower target price of HK$80.00 (US$89.00).

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

<Foresight>Brokers Expect BIDU-SW 4Q24 Adj. NP to Fall 39% YoY; Focus on Mgmt Guidance

BIDU-SW (09888.HK) (BIDU.US)will announce its 4Q24 results after the Hong Kong equity market closes next Tuesday (18th), affected by the challenging macroeconomic environment in China and the joint venture NEV brand, Jiyue, etc..

Investors looked on management guidance, including the AI search transformation and core ad revenue commercialization progress, as well as the business outlook for AI Cloud (benefiting from generative AI and foundation model incremental and strong demand for GPU cloud).

BIDU-SW's 4Q24 non-GAAP attributable net profit will range from RMB4.207 billion to RMB5.668 billion, down 22.9-45.8% YoY from RMB7.755 billion in 4Q23, according to 11 brokers' forecasts summarized by our reporters.

Median was RMB4.7 billion, down 39.4% YoY.

Broker│ 4Q24 Non-GAAP Attributable Net Profit Forecast (RMB)│YoY Change
Daiwa│5.668 billion│-26.9%
Goldman Sachs│5.23 billion│-35.7%
Citi│5.21 billion│-32.8%
Morgan Stanley│4.969 billion│-35.9%
JPMorgan│4.941 billion│-36.3%
CMBI│4.7 billion│-39.4%
CCBI│4.613 billion│-40.5%
Deutsche Bank AG│4.584 billion│-40.9%
UBS│4.329 billion│-44.2%
CICC│4.28 billion│-44.8%
Nomura│4.207 billion│-45.8%

Based on BIDU-SW's 4Q23 non-GAAP attributable net profit of RMB7.755 billion.

Source: AAStocks Financial News

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

[winston]

Baidu Search, Ernie Agent Entirely Link to DeepSeek

BIDU-SW (09888.HK) (BIDU.US) Baidu Search and Ernie Agent announced that they will entirely link to the latest deep search functions of DeepSeek and Ernie foundation model.

Search users will have free access to the deep search functions of DeepSeek and Ernie foundation model, whereas developers of the Ernie Agent will be able to call on the DeepSeek model at any time to create and optimize the agent.

Related News: UBS Still Sees Upside Potential Despite Risk for Near Term Pullback in CN Techs

Ernie foundation model's deep search function, which was launched on February 13, is equipped with more powerful thinking planning and tool deployment capabilities, rendering users with expert content responses and handling multi-scenario tasks, realizing multi-mode input and output.

Source: AAStocks Financial News

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