China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

[Baidu, Inc. (BIDU US, BUY, TP US$157) TP Change]: C4Q/2024 Ads Upswing Bridge Gap to the Future

[Baidu, Inc. (BIDU US, BUY, TP US$146)TP Change]: The Commercialization Path of AI Is Becoming Clear

[Baidu,Inc.(BIDU US,BUY,TP US$116) TP Change]: AI Transforming Search Is a Long and Treacherous Road

[Baidu, Inc. (BIDU US, BUY, TP US$162) TP Change]: Cut TP Due to Weaker Outlook in Ads and Cloud

[Baidu (BIDU US, BUY, TP US$178) Target Price Change]: Maintain BUY for Faster Recovery and AIGC

[Baidu (BIDU US) Target Price Change]: Better Recovery with Leading Position in AIGC

China/Asia TMT

Shawn Yang

Equity Bottom-Up

<ul>
<li>Baidu reported 2Q23 revenue/non-GAAP net income 2.3%/38.1% vs cons., Baidu core’s online marketing revenues and other revenues grew 7.1%/13.0% YoY, respectively. </li>
<li>We expect that Baidu’s ads growth will continue into 2H23, supported by recovery of key advertisers. </li>
<li>We slightly increase FY23 EPS estimates and maintain our TP of US$162, which implies 17.8X PE.</li>
</ul>


Baidu reported 2Q23 revenue/non-GAAP net income 2.3%/38.1% vs cons., Baidu core’s online marketing revenues and other revenues grew 7.1%/13.0% YoY, respectively. 
We expect that Baidu’s ads growth will continue into 2H23, supported by recovery of key advertisers. 
We slightly increase FY23 EPS estimates and maintain our TP of US$162, which implies 17.8X PE.


[Baidu (BIDU US, BUY, TP US$162) Earnings Review]: Online Ads Growth Will Remain Robust