In today’s briefing:
- Xinyi Glass (868 HK): Resilient FY23 Results; A Nice Dividend Play
- [Baidu,Inc.(BIDU US,BUY,TP US$116) TP Change]: AI Transforming Search Is a Long and Treacherous Road
- [PDD Holdings Inc. (PDD US, BUY, TP US$178) TP Change]: Fine-Tuned Extraction of Merchant Profits
Xinyi Glass (868 HK): Resilient FY23 Results; A Nice Dividend Play
- Xinyi Glass Holdings (868 HK) reported FY23 results, with net profit up 5% yoy and sales up 4% yoy.
- The company announced a final dividend of HKD0.37 per share, resulting in a full year dividend of HKD0.63 per share, which is a yield of 8%.
- Overall the results look resilient, with auto glass segment a bit weaker than expected and float glass segment stronger than expected.
[Baidu,Inc.(BIDU US,BUY,TP US$116) TP Change]: AI Transforming Search Is a Long and Treacherous Road
- Baidu (BIDU) reported C4Q23 top line, non-GAAP operating profit and GAAP net income inline, 9.4% and (43%) vs. our estimates, and inline, 8.2% and (46%) vs. consensus.
- We believe LLM is fundamentally an upgrade of search; further, BIDU is a 2B/general AI play in China, a country filled with 2C/specialized AI players;
- We cut our TP for BIDU from US$157 to US$116 and maintain BUY.
[PDD Holdings Inc. (PDD US, BUY, TP US$178) TP Change]: Fine-Tuned Extraction of Merchant Profits
- We expect PDD to report CY4Q23 top-line and non-GAAP net income 14.3% and 21.2% vs. consensus. Main model changes are increased Temu revenue per order and PDD take-rate;
- Temu continued increasing prices despite the holiday shopping season, and merchants reported that Temu began charging service fees. PDD upgraded its ads tools, which we expect boosted China take rate.
- We maintain our BUY rating and raise our TP to US$ 178.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
