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

[winston]

vested

Baidu's first-quarter operating income beat estimates on AI demand surge

Revenue in the first quarter surprisingly rose 3 percent year-on-year to 32.45 billion yuan,

The non-online marketing revenue jumped by 40 percent year-on-year to 9.4 billion yuan, mainly driven by AI Cloud business.

The net profit shrank by 8 percent to 6.47 billion yuan (HK$7.03 billion) from one year ago.

Source: The Standard

https://www.thestandard.com.hk/tech-and ... le/302999/

[winston]

vested

1Q25: Solid Earnings Beat, Fuelled by AI Cloud Growth and Monetisation Visibility

Baidu’s 1Q25 earnings beat expectations.

Revenue grew 3% yoy to Rmb32.5b, 5% better than consensus estimate.

Gross margin dropped 5ppt yoy to 46.1%, below consensus expectation.

Non-GAAP operating profit was Rmb5.3b, down 20% yoy, while non-GAAP operating profit margin came in at 16%.

Non-GAAP net profit declined 8% yoy to Rmb6.5b, better than consensus estimate.

Maintain HOLD with a slightly higher target price of HK$91.00 (US$101.00).

Source: UOBKH

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

[winston]

vested

BIDU-SW Slips ~3% as Mgmt Guides for Decline in 2Q/ 3Q25 Ads Rev.

Baidu (BIDU.US) once climbed as much as 6.5% to USD95.15 overnight (21st), yet it eventually closed down 4.3% at USD85.48.

BIDU-SW announced its 1Q25 results after the market closed yesterday (21st).

The company's net income rose by nearly 42% YoY to RMB7.717 billion, above the forecasted upper limit of RMB4.316 billion from five brokers as consolidated by our reporters.

Its EPS stood at RMB2.73, while its earnings per ADS reached RMB21.86.

On a non-GAAP basis, BIDU-SW's net income fell by nearly 8% YoY to RMB6.469 billion, exceeding the forecasted upper limit of RMB5.68 billion from 10 brokers as consolidated by our reporters.

Nomura wrote in its research report that BIDU-SW estimated last quarter that its advertising business would gradually recover this year, but the latest guidance now forecasts a 10% YoY drop in the company's 2Q/ 3Q25 advertising revenue, with potential improvement only in 4Q.

Source: AAStocks Financial News

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

[winston]

<Research>G Sachs Drops TPs for BIDU's H-shrs/ US Stock to $94/ US$96, Keeps Rating Buy

BIDU-SW (09888.HK) (BIDU.US) delivered solid 1Q25 results, with cloud business revenue growing by 42% YoY and profit margin improving QoQ to low teen level, according to a research report released by Goldman Sachs.

It is expected that BIDU-SW's cloud business will maintain at least around 25% growth in 2Q25, outperforming its peers.

Goldman Sachs lowered BIDU-SW's 2025-2027 EPADS by 4-6% due to profit margin pressure given a shift in revenue mix, AI investment and weaker advertising revenue, although these are partially offset by a better outlook for cloud business revenue.

Therefore, the broker dropped its target prices for BIDU-SW's H-shares/ US stock to $94/ US$96 each, with rating kept at Buy.

Source: AASTOCKS Financial News

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

[winston]

vested

<Research>M Stanley Lifts Baidu (BIDU.US)'s TP to USD100, Expects 2Q Core Rev. to Drop 3%


Morgan Stanley has released a research report predicting BIDU-SW (09888.HK) (BIDU.US) to see a 3% decline in its 2Q25 core revenue.

Impacted by operational deleveraging, BIDU-SW's 2Q non-GAAP core operating profit is anticipated to fall by 43% YoY, with the operating profit margin dropping by 10.7 ppts to 15.5%.

Related News: M Stanley Sees Resumption of Nvidia H20 Chip Sales to CN as Positive Catalyst for BABA-W/ TENCENT/ BIDU-SW

Morgan Stanley lowered its forecast for BIDU-SW's core advertising growth in 2Q to a contraction of 15%, with further decline in advertising growth expected in 3Q.

The broker also believed that the company's cloud business growth should remain at 25% in 2Q.

Remaining cautious about BIDU-SW, Morgan Stanley noted that visibility in the recovery of its core business was limited, while profit margins receded because of weak revenue.

Due to foreign exchange adjustments, the broker raised its target price for BIDU-SW's US shares from USD95 to USD100, with the Equalweight remaining in place.

Source: AAStocks Financial News

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

[winston]

vested

<Research>Jefferies Expects BIDU-SW (09888.HK) 2Q Cloud Biz Rev. to Grow by 25%, Chops TP to $107

Jefferies released a research report predicting that BIDU-SW (09888.HK) (BIDU.US) 's 2Q25 core revenue will decline by approx. 3% YoY to around RMB26 billion.

Core online marketing revenue is expected to drop by 16% YoY, while cloud revenue is projected to grow by 25% driven by AI demand.

Core non-GAAP operating profit is expected to reach RMB4 billion, below the market consensus of RMB4.9 billion.

Regarding BIDU-SW's collaboration agreement with UBER (UBER.US) , Jefferies believed that the partnership confirms BIDU-SW's leading position in autonomous driving technology, and kept rating at Buy.

The broker chopped its target prices for BIDU-SW's US stock/ H-shares from US$120/ $116 to US$110/ $107.

Source: AASTOCKS Financial News

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

[winston]

vested

<Research>CICC: Lower-than-expected BIDU-SW (09888.HK) Core Ad Rev. Estimated w/ TP $96, Rating Kept at Outperform

CICC released a research report expecting BIDU-SW (09888.HK), (BIDU.US)'s 2Q25 revenue to drop 3.8% YoY to RMB32.7 billion.

Of which, BIDU-SW's core revenue is estimated to decrease by 3.8% YoY to RMB25.7 billion.

Due to the lower-than-expected core advertising revenue, CICC lowered its 2025/ 2026 revenue forecasts for BIDU-SW by 1%/ 2% to RMB131.3 billion/ RMB132.2 billion, and reduced its 2025/ 2026 non-GAAP net profit forecasts by 16%/ 8% to RMB18.2 billion/ RMB21.8 billion each, with rating kept at Outperform.

Related News: M Stanley Sees Resumption of Nvidia H20 Chip Sales to CN as Positive Catalyst for BABA-W/ TENCENT/ BIDU-SW

Considering the valuation boost in some segments, CICC maintained its target prices for BIDU-SW's US stock/ H-shares at US$99.1/ $96, corresponding to a 14x/ 11x non-GAAP PE ratios for 2025/ 2026 based on a SOTP valuation method, offering an upside potential of 6%/ 8% for its US stock/ H-shares, respectively.

Source: AASTOCKS Financial News

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

[winston]

not vested

China's Baidu misses quarterly revenue estimates on advertising weakness

Persistent weakness in the advertising market amid prolonged economic uncertainty.

Slammed by a property market downturn, weak employment rates and choppy consumer demand, companies in the world's second-largest economy have reined in advertising spending to cut costs and protect their margins.

Baidu, which relies heavily on advertising in its search engine, also took a hit. Its core online advertising business, which typically makes up 60 percent of the overall company revenue, reported a 15 percent decrease in revenue to 16.2 billion yuan (HK$17.6 billion) during the April-June quarter.

That eclipsed upbeat growth at the company's AI cloud segment, which drove a 34 percent increase in Baidu's non-online advertising business.

The company reported total revenue of 32.71 billion yuan during the second quarter, down 4 percent from the year earlier.

Source: Reuters

Source: The Standard

https://www.thestandard.com.hk/tech-and ... le/309465/

[winston]

not vested

Baidu Inc (9888 HK)

2Q25: Earnings Miss Expectations; Release Of Next-Gen Ernie Bot

In 2H25 Baidu’s 2Q25 earnings missed our expectations.

Revenue dropped 4% yoy to Rmb32.7b, in line with consensus estimates.

Gross margin dropped 8ppt yoy to 43.9%, below consensus expectations.

Non-GAAP operating profit was Rmb4.4b, plunging 41% yoy, while non-GAAP operating profit margin came in at 14%.

Non-GAAP net profit slumped 35% yoy to Rmb4.8b, beating consensus forecasts.

Maintain HOLD with an unchanged target price of HK$88.00 (US$98.00).

Source: UOBKH

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

[winston]

not vested

<Hindsight>Latest TPs/ Opinions for BIDU-SW Post-results

Broker│ Rating│ Target Price
Jefferies│ Buy│$107->$104
UBS│ Buy│$102
JPMorgan│ Neutral│$85
HSBC Global Research│ Hold│$74.1

Related NewsB: IDU-SW 2Q Non-GAAP NP Sinks 35.2% to RMB4.795B, In Line

The table below lists the ratings and target prices for Baidu (BIDU.US) from 8 brokers:

Broker│ Rating│ Target Price (USD)
Citi│ Buy│140->143
Jefferies│ Buy│110->108
CLSA│ Outperform│105
UBS│ Buy│105->103
Morgan Stanley│ Equalweight│100
Nomura│ Neutral│93
JPMorgan│ Neutral│85
HSBC Global Research│ Hold│76

Broker│ Opinion

Citi│ Cloud business revenue growth accelerated, but advertising revenue recorded negative growth, affecting revenue mix and profit margin

Jefferies│ User experience took priority amid AI transformation

CLSA│AI search transformation was challenging

UBS│ Earnings beat expectations, benefiting from improved operating efficiency

Morgan Stanley│ Quarterly results were largely in line with forecasts, with AI cloud offsetting market pressure

Nomura | Quarterly results beat low expectations, but 2H25 outlook weakened

JPMorgan | Quarterly results beat expectations, but market reaction is expected to be muted

HSBC Global Research | Monetization pricing for AI search will take time

Source: AAStocks Financial News

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