reports
- Julia Pan Mengyao
- Ming San Soong
Baidu Inc (9888 HK): 2Q25: Earnings missed expectations; release of ne...
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).
- Jin Yoon
BIDU 2Q25 Results: Ad Revs and Margins Remain Under Pressure in 2H
What’s new: Baidu’s reported 2Q25 core revs that were slightly above consensus and our expectations. Baidu Core ad revs could remain under pressure in the 2H partly due to continued restructuring of AI search. Margins could also be adversely impacted by the decline in ads and continued investments in AI. We maintain our PT at USD110. Analysts: Jin Yoon
- Bella Lu Yifei
- Carol Dou Xiao Qin
- Claire Wang Kelai
- Colin Lee
- Damon Shen
- Ejann Hiew
- Gigi Cheuk
- Greater China Research Team
- Jieqi Liu
- Johnny Yum Chung Man
- Julia Pan Mengyao
- Kate Luang
- Ken Lee
- Kenny Yong Hui Lim
- Ming San Soong
- Sunny Chen
- Ziv Ang Sze Champ
Greater China Daily: Thursday, August 21, 2025
KEY HIGHLIGHTS Results Baidu Inc (9888 HK/HOLD/HK$87.25/Target: HK$88.00) 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 ...
00683 KERRY PROPERTIES LIMITED
00388 HONG KONG EXCHANGES & CLEARING LTD.
SXC SUNNY OPTICAL TECHNOLOGY (GROUP) CO. LTD.
3K1 KINGSOFT CORP. LTD.
6WX CHINA LONGYUAN POWER GROUP CORP. LTD. CLASS H
1833 PING AN HEALTHCARE AND TECHNOLOGY COMPANY LIMITED
3606 FUYAO GLASS INDUSTRY GROUP CO LTD-H
2269 WUXI BIOLOGICS (CAYMAN) INC.
09888 BAIDU INC
2232 CRYSTAL INTERNATIONAL GROUP LTD
300244 DIAN DIAGNOSTICS GROUP CO
- Julia Pan Mengyao
- Ming San Soong
China Internet: WAIC -- Battlefield of AI applications and agents to r...
WAIC 2025 was held in Shanghai on 26-28 July under the theme "Intelligent Horizons, Shared Future". The focus of WAIC this year shifted from LLM to the next frontier – AI applications and AI agents. As AI capabilities extend from the cloud to edge devices, a transformative evolution in human-AI interaction is underway, characterised by more tangible, embodied forms and empathetic voice interfaces. Maintain MARKET WEIGHT.
- Jin Yoon
BIDU 2Q25 Preview: Ads Continues to be Meaningfully Impacted by the Re...
What’s New: We nudge down our Baidu Core total rev estimates as ads could continue to be meaningfully impacted by the restructuring of AI search. Cloud could also be impacted by fluctuations in project-based revs. Baidu Core margins could also see further downward pressure due to the decline in ad revs in the near-term. Analysts: Jin Yoon
- Pierre FerraguÊ
Ride-sharing & Delivery: Lower prices fuel accelerating volumes
Today, we are publishing the Ride-sharing & Delivery section of our 27th Tech Infrastructure Quarterly Bible. The Tech Bible is a must-read for any tech investor, as it summarizes the quarterly earnings reports from the over 140 companies we track, providing an update on our key perspectives and convictions. In the coming weeks we will publish sections on Automotive, Memory, Hyperscale & Cloud, Telecom Equipment, Industrials, PCs, Enterprise IT, Foundry, Service Provider and Semicap Equipment. ...
- Jin Yoon
BIDU 1Q25 Results: Restructuring of AI Search to Put Pressure on Ad Re...
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
- Julia Pan Mengyao
- Ming San Soong
Baidu Inc (9888 HK): 1Q25: Solid earnings beat; fuelled by AI cloud gr...
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).
- Bella Lu Yifei
- Greater China Research Team
- Julia Pan Mengyao
- Ken Lee
- Ming San Soong
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...
- Jin Yoon
- Julia Pan Mengyao
- Ming San Soong
China Internet: Navigating headwinds and uncovering opportunities upon...
Chinese internet companies’ share prices have dropped 10-30% mtd following the implementation of incremental tariffs from the US. Chinese internet companies have limited business exposure to the US except for PDD’s Temu. However, the 34% tariffs announced by China on all US imports could have potential implications for China mega-caps’ AI capex in relation to US chip imports. We prefer domestic-focused plays which stand to benefit from domestic policy stimuli, with Southbound inflow to be a key ...
NEH NETEASE INC. SPONSORED ADR
JD JD.COM INC. SPONSORED ADR CLASS A
N1U NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. SPONSORED ADR
K3SD BAIDU INC SPONSORED ADR CLASS A
A117ME ALIBABA GROUP HOLDING LTD. SPONSORED ADR
3K1 KINGSOFT CORP. LTD.
00700 TENCENT HOLDINGS LTD.
PDD PINDUODUO INC. SPONSORED ADR CLASS A
03690 MEITUAN CLASS B
00780 TONGCHENG-ELONG HOLDINGS LIMITED
TCOM TRIP.COM GROUP LTD. SPONSORED ADR
09988 ALIBABA GROUP HOLDING LTD.
09999 NETEASE INC
09618 JD.COM INC. CLASS A
01024 KUAISHOU TECHNOLOGY CLASS B
09888 BAIDU INC
09961 CTRIP.COM INTERNATIONAL
- Pierre FerraguÊ
Bible 4Q24 – Mobility & Delivery: Healthy underlying growth
Today, we are publishing the Mobility & Delivery section of our 26th Tech Infrastructure Quarterly Bible. The Tech Bible is a must-read for any tech investor, as it summarizes the quarterly earnings reports from the over 140 companies we track, providing an update on our key perspectives and convictions. Later this week we will publish sections on Memory, Semicap, Enterprise IT, PC. Ride-sharing bookings decelerated slightly but still posted robust double-digit growth, while delivery bookings a...
- Jin Yoon
BIDU 4Q24 Results: AI Cloud Remains Resilient
What’s new: Baidu’s reported 4Q24 top-line results that were largely in line with consensus and our expectations. Baidu Core ad rev growth could potentially bottom out in 4Q24 and recover throughout 2025 partly driven by monetization of gen-AI search ads. AI Cloud could remain resilient partly driven by demand for gen-AI related services. We maintain our PT at USD110. Analysts: Jin Yoon
- Julia Pan Mengyao
- Ming San Soong
Baidu Inc (9888 HK): 4Q24: Solid earnings beat and strong AI cloud rev...
Baidu’s 4Q24 earnings beat expectations. Revenue dipped 2% yoy to Rmb34.1b, in line with consensus estimate. Gross margin inched down 3ppt yoy to 47.2%, within consensus expectation. Non-GAAP operating profit was Rmb5b, down 29% yoy, while non-GAAP operating profit margin came in at 15%. Non-GAAP net profit plummeted 13% yoy to Rmb6.7b, albeit surpassing consensus estimate by 39%. Maintain HOLD with an unchanged target price of HK$93.00 (US$103.00).
- Damon Shen
- Greater China Research Team
- Jieqi Liu
- Julia Pan Mengyao
- Ming San Soong
Greater China Daily: Wednesday, February 19, 2025
KEY HIGHLIGHTS Results Baidu Inc (9888 HK/HOLD/HK$90.20/Target: HK$93.00) Baidu’s 4Q24 earnings beat expectations. Revenue dipped 2% yoy to Rmb34.1b, in line with consensus estimate. Gross margin inched down 3ppt yoy to 47.2%, within consensus expectation. Non-GAAP operating profit was Rmb5b, down 29% yoy, while non-GAAP operating profit margin came in at 15%. Non-GAAP net profit plummeted 13% yoy to Rmb6.7b, albeit surpassing consensus estimate by 39%. Maintain HOLD with an unchanged target p...
- Julia Pan Mengyao
- Ming San Soong
China Internet: Growth potential and AI development trends following e...
Amid geopolitical uncertainties, the emergence of DeepSeek models have ignited a major AI industry shake-up, garnered investor attention and drawn wide developer interest in the Chinese AI industry as it lowers the technical and financial barriers in deploying LLM. An increasing number of global hyperscalers and application companies have facilitated the deployment of DeepSeek and Qwen models, further expanding their accessibility and adoption. Maintain MARKET WEIGHT.
- Julia Pan Mengyao
- Ming San Soong
Baidu Inc (9888 HK): 4Q24 preview: Online ad weakness persists; poised...
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).
- Carol Dou Xiao Qin
- Greater China Research Team
- Julia Pan Mengyao
- Kenny Yong Hui Lim
- Ming San Soong
- Roy Chen Chengzhi
- Shirley Wang Xueyi
- Stella Guo Yuting
- Sunny Chen
Greater China Daily: Monday, January 27, 2025
KEY HIGHLIGHTS Sector Aviation: Airlines Based on their preliminary earnings estimates, all three airlines remained in a loss-making position for 2024. This is below our expectations as we were expecting Air China and CSA to record slight profits. The losses were likely due to the sector’s overcapacity situation, but we remain hopeful for the sector’s turnaround in 2025 helped by further demand growth. Having said that, a moderate earnings recovery is not enough to resolve the airlines’ balanc...
- Jin Yoon
BIDU 4Q24 Preview: Lowering BIDU Core Margin Estimates
What’s New: We nudge down our 4Q24 and 1Q25 Baidu Core non-GAAP OPM estimates partly to reflect the impairment losses related to JIDU in 4Q and potential investments in user acquisitions related to search and other consumer-facing related products in 1Q. Analysts: Jin Yoon
- Julia Pan Mengyao
- Ming San Soong
China Internet: 1H25 outlook shaped by implications of fiscal stimuli ...
We saw largely in-line top-line growth across companies in 3Q24, mainly pressured by a lukewarm macro environment, but with earnings beat thanks to enhanced efficiency from AI integration. Alongside pending visibility on further domestic supportive policies, we believe the key 2025 highlights are: a) re-acceleration of e-commerce GMV growth, b) potential upside in ad take rate monetisation, c) rejuvenation of online games grossing, and d) sustained travel enthusiasm. Maintain MARKET WEIGHT.
JD JD.COM INC. SPONSORED ADR CLASS A
K3SD BAIDU INC SPONSORED ADR CLASS A
A117ME ALIBABA GROUP HOLDING LTD. SPONSORED ADR
3K1 KINGSOFT CORP. LTD.
00700 TENCENT HOLDINGS LTD.
PDD PINDUODUO INC. SPONSORED ADR CLASS A
03690 MEITUAN CLASS B
00780 TONGCHENG-ELONG HOLDINGS LIMITED
TCOM TRIP.COM GROUP LTD. SPONSORED ADR
BEKE KE HOLDINGS INC. SPONSORED ADR CLASS A
09988 ALIBABA GROUP HOLDING LTD.
09999 NETEASE INC
09618 JD.COM INC. CLASS A
01024 KUAISHOU TECHNOLOGY CLASS B
09888 BAIDU INC
02423 KE HOLDINGS INC.
09961 CTRIP.COM INTERNATIONAL
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