New Street Research - Baidu Inc Sponsored ADR Class A (K3SD) BIDU 1Q25 Results: Restructuring of AI Search to Put Pressure on Ad Revs in the Next Few Quarters

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New Street Research

Jin Yoon

BIDU 1Q25 Results: Restructuring of AI Search to Put Pressure on Ad Revs in the Next Few Quarters

What’s new: Baidu’s reported 1Q25 results that were above consensus and our expectations driven by AI Cloud. Baidu Core ad rev growth could be impacted by the continued restructuring of AI search. AI Cloud growth could remain resilient in 2Q. We maintain our PT at USD110.

Analysts:
Jin Yoon

22/05/2025 1 EN

Underlying

Baidu Inc Sponsored ADR Class A

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US0567521085 Singapore Exchange Cayman Islands

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Analysts

Jin Yoon

Other Reports on these Companies

UOB

Baidu Inc (9888 HK): 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).

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UOB

Greater China Daily: Thursday, May 22, 2025

KEY HIGHLIGHTS Results Baidu Inc (9888 HK/HOLD/HK$86.10/Target: HK$91.00) 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). XPeng Inc (9868 HK/BUY/HK$77.55/Target: HK$150.00) XPeng’s 1Q25 results came in be...

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WB 1Q25 Results: Ad Rev Growth Could Remain Flat in 2Q

What’s new: Weibo’s reported 1Q25 results that were above consensus and our expectations. Ad rev growth could remain flat YoY in 2Q as resiliency in verticals such as 3C, and e-commerce could be offset by continued YoY decline in gaming. Margins could also continue to be impacted by AI investments. We maintain our PT at USD12. Analysts: Jin Yoon

2h / 20m 2h / 20m 1 EN

Jin Yoon

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IQ 1Q25 Results: Margins Impacted by Investments in Micro Drama

What’s new: iQIYI's reported 1Q25 revs that were largely in-line with consensus and our expectations. Margins could continue to be impacted by incremental investments in micro drama. We lower our PT from US$3.50 to US$2.00 partly due to the lowered margin outlook. Our updated PT of US$2.00 implies 16.2x FY26E P/E. We maintain our BUY rating. Analysts: Jin Yoon

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BIDU 1Q25 Results: Restructuring of AI Search to Put Pressure on Ad Revs in the Next Few Quarters

Baidu Inc (9888 HK): 1Q25: Solid earnings beat; fuelled by AI cloud growth and monetisation visibility.

Greater China Daily: Thursday, May 22, 2025

WB 1Q25 Results: Ad Rev Growth Could Remain Flat in 2Q

IQ 1Q25 Results: Margins Impacted by Investments in Micro Drama

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