External broker reports(aggregated public sources), CMB International

CMB International

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.

External broker reports(aggregated public sources)

Equity Bottom-Up

<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><p><em>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.</em></p>

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