External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>Baidu announced (21 Nov) its 3Q24 results: total revenue was RMB33.6bn, inline with both our forecast and Bloomberg consensus; excluding one-off foreign exchange loss of RMB1.1bn, non-GAAP net income would be RMB7.0bn, better than consensus of RMB6.2bn.</li><li>Non-GAAP OP of Baidu Core reached RMB6.7bn, 1%/4% better than our forecast/ consensus, thanks to more optimized than expected R&amp;D spending.</li><li>Monetization of Gen-AI related initiative likely still takes time, and we expect Baidu to still prioritize product enhancement and user engagement improvement over monetization in 4Q24- 1Q25, while we concur that the related investment in driving for business transformation is vital for Baidu’s long-term business development. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Baidu announced (21 Nov) its 3Q24 results: total revenue was RMB33.6bn, inline with both our forecast and Bloomberg consensus; excluding one-off foreign exchange loss of RMB1.1bn, non-GAAP net income would be RMB7.0bn, better than consensus of RMB6.2bn.Non-GAAP OP of Baidu Core reached RMB6.7bn, 1%/4% better than our forecast/ consensus, thanks to more optimized than expected R&amp;D spending.Monetization of Gen-AI related initiative likely still takes time, and we expect Baidu to still prioritize product enhancement and user engagement improvement over monetization in 4Q24- 1Q25, while we concur that the related investment in driving for business transformation is vital for Baidu’s long-term business development. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Baidu (BIDU US) - Pace of Ads Rev Growth Recovery Key to Watch

<ul><li>We expect Baidu Core business to deliver broadly inline-with-consensus revenue, and slightly better-than-consensus non-GAAP operating profit for 3Q24E.</li><li>Although proactive business adjustments to embed more GenAI-related results in search results weigh on short-term monetization, we view the adjustments as vital for Baidu’s long-term business development and monetization improvement, and expect better visibility on ads revenue growth to be one of the key catalysts for stock price.</li><li>We see additional catalysts to come from: 1) more rapid-than-expected expansion of Robotaxi business; 2) more rapid-than-expected commercialization from GenAI-related initiatives; and 3) enhancement of shareholder return. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We expect Baidu Core business to deliver broadly inline-with-consensus revenue, and slightly better-than-consensus non-GAAP operating profit for 3Q24E.Although proactive business adjustments to embed more GenAI-related results in search results weigh on short-term monetization, we view the adjustments as vital for Baidu’s long-term business development and monetization improvement, and expect better visibility on ads revenue growth to be one of the key catalysts for stock price.We see additional catalysts to come from: 1) more rapid-than-expected expansion of Robotaxi business; 2) more rapid-than-expected commercialization from GenAI-related initiatives; and 3) enhancement of shareholder return. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Baidu (BIDU US) - Awaiting Recovery of Ads Revenue Growth

<ul><li>Baidu announced (22 Aug) its 2Q24 results: revenue was RMB33.9bn, down 0.4% YoY and largely in line with Bloomberg consensus; non-GAAP net income was RMB7.4bn, 9% better than consensus, thanks to better-than-expected sales and marketing expense control.</li><li>Baidu is becoming more determined in driving user experience improvement, guiding to aim for a further increase in the contribution of Gen-AI generated results in search results page, and prioritize user experience improvement over monetization in the short term.</li><li>Although the transformation will likely bring incremental headwinds to ads revenue growth in the near term, Baidu’s long-term monetization prospects should be enhanced, in our view, with enhanced user stickiness, and potential innovative cost per sale (CPS) ads formats. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Baidu announced (22 Aug) its 2Q24 results: revenue was RMB33.9bn, down 0.4% YoY and largely in line with Bloomberg consensus; non-GAAP net income was RMB7.4bn, 9% better than consensus, thanks to better-than-expected sales and marketing expense control.Baidu is becoming more determined in driving user experience improvement, guiding to aim for a further increase in the contribution of Gen-AI generated results in search results page, and prioritize user experience improvement over monetization in the short term.Although the transformation will likely bring incremental headwinds to ads revenue growth in the near term, Baidu’s long-term monetization prospects should be enhanced, in our view, with enhanced user stickiness, and potential innovative cost per sale (CPS) ads formats. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Baidu (BIDU US) - More aggressive in Gen-AI empowered ads business transformation

<ul><li>We expect Baidu Core business to deliver revenue growth in line with our expectation but slightly slower than market consensus estimates in 2Q24E, owing to the proactive business adjustment to embed more GenAI-related results in search results which are currently under-monetized, as well as the soft macro environment which has weighed on overall advertising budget.</li><li>However, we are positive that this proactive adjustment could help improve user experience and enhance long-term monetization prospects.</li><li>Cloud profitability is on expansion track, and the increase in penetration of fully driverless cars, as well as the deployment of new car models could drive unit economics (UE) improvement for Robotaxi business, in our view. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We expect Baidu Core business to deliver revenue growth in line with our expectation but slightly slower than market consensus estimates in 2Q24E, owing to the proactive business adjustment to embed more GenAI-related results in search results which are currently under-monetized, as well as the soft macro environment which has weighed on overall advertising budget.However, we are positive that this proactive adjustment could help improve user experience and enhance long-term monetization prospects.Cloud profitability is on expansion track, and the increase in penetration of fully driverless cars, as well as the deployment of new car models could drive unit economics (UE) improvement for Robotaxi business, in our view. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Baidu (BIDU US) - Impact from Proactive Business Adjustment Likely in Line with Our Expectation

<ul><li>Baidu announced (16 May) its 1Q24 results: revenue was RMB31.5bn, up 1.2% YoY, and was in line with Bloomberg consensus.</li><li>Non-GAAP net income of Baidu Core was RMB6.6bn, better than consensus at RMB5.1bn, thanks to better-thanexpected cost control.</li><li>Management highlighted that AI-related ads and cloud revenue are continuously ramping up, and it is accelerating generative AIempowered search business transformation, to drive better long-term business development prospects. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Baidu announced (16 May) its 1Q24 results: revenue was RMB31.5bn, up 1.2% YoY, and was in line with Bloomberg consensus.Non-GAAP net income of Baidu Core was RMB6.6bn, better than consensus at RMB5.1bn, thanks to better-thanexpected cost control.Management highlighted that AI-related ads and cloud revenue are continuously ramping up, and it is accelerating generative AIempowered search business transformation, to drive better long-term business development prospects. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Baidu (BIDU US) - Accelerating Gen AI-Empowered Business Transformation

China

Baidu, Inc. operates an Internet search engine. The Company offers algorithmic search, enterprise search, news, MP3, and image searches, voice assistance, online storage, and navigation services. Baidu serves clients globally.

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Baidu (BIDU US)

Baidu (BIDU US) - Pace of Ads Rev Growth Recovery Key to Watch

We cut our SOTP-based TP by 7% to US$153.6 (was US$164.8) to reflect fine-tuned outlook on ads revenue growth recovery. Maintain BUY.

CMB International

Baidu (BIDU US) - Awaiting Recovery of Ads Revenue Growth

We expect Baidu Core business to deliver broadly inline-with-consensus revenue, and slightly better-than-consensus non-GAAP operating profit for...

CMB International

Baidu (BIDU US) - More aggressive in Gen-AI empowered ads business transformation

Baidu announced (22 Aug) its 2Q24 results: revenue was RMB33.9bn, down 0.4% YoY and largely in line with Bloomberg consensus

CMB International

Baidu (BIDU US) - Impact from Proactive Business Adjustment Likely in Line with Our Expectation

We expect Baidu Core business to deliver revenue growth in line with our expectation but slightly slower than market consensus estimates in 2Q24E

CMB International

Baidu (BIDU US) - Accelerating Gen AI-Empowered Business Transformation

Baidu announced (16 May) its 1Q24 results: revenue was RMB31.5bn, up 1.2% YoY, and was in line with Bloomberg consensus.

CMB International

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