Investment Rating - The report maintains a "Buy" rating for Baidu Group with a target price of 137 HKD, indicating an expected upside of over 20% within the next six months [1]. Core Insights - Baidu's total revenue for Q3 2024 is projected to be 33.6 billion CNY, a year-on-year decrease of 2.5%. The Non-GAAP net profit is expected to be 6.2 billion CNY, down 14% year-on-year [1]. - The report anticipates that Baidu Core revenue will be 26.3 billion CNY, a decline of 1.2% year-on-year, with online marketing revenue at 18.7 billion CNY, down 5% [1]. - The AI cloud business is expected to grow, with revenue projected at 5 billion CNY, reflecting a 14% year-on-year increase. The user base for Wenxin Yiyan is expected to reach 430 million, with daily usage hitting 1.5 billion [1]. Summary by Sections Financial Performance - Total revenue for Q3 2024 is expected to be 33.6 billion CNY, down 2.5% year-on-year. Non-GAAP net profit is projected at 6.2 billion CNY, a decrease of 14% [1]. - Baidu Core revenue is anticipated to be 26.3 billion CNY, with online marketing revenue at 18.7 billion CNY, down 5% year-on-year [1]. Business Segments - Non-online marketing revenue is expected to grow by 10% year-on-year, reaching 7.5 billion CNY. iQIYI's revenue is projected to be 7.6 billion CNY, down 5% [1]. - The AI cloud business is projected to achieve 5 billion CNY in revenue, marking a 14% increase year-on-year [1]. Future Outlook - The report suggests that while advertising recovery may be slower than expected, there could be a turning point next year. The application of large language models is expected to drive growth in Baidu's cloud business [1]. - The report emphasizes the ongoing development of AI applications and the establishment of an intelligent agent platform, which has attracted 150,000 enterprises and 800,000 developers [1].

目前，百度APP月活跃用户已经达到了7.04亿，海量的活跃用户代表着巨大的流量和机会。越来越 多的创作者在百家号通过内容与用户产生连接，优质故事内容获得更多的流量，创作者和版权方也获 得多元化收益，短剧等优质内容也获得全面爆发。10月份,百度APP短剧付费的GMV是2月的161 倍，短剧消费时长、分发规模也呈现出倍数增长。 李小婉介绍称，目前百家号的创作者规模已经突破1100万，使用AI的创作者总规模年同比增长 245%。AI已经成为百度内容生态全方位增长的新驱动力。百度APP全新上线了新融合、AI发布器等 AI新功能，持续用AI创新为用户和创作者带来新的体验和惊喜。 AI成全方位增长的新驱动力。 本文为IPO早知道原创 作者｜Stone Jin 微信公众号｜ipozaozhidao 据IPO早知道消息，百度信息分发平台总经理、百家号负责人李小婉在11月12日举办的百度世界 2024上以《更多AI新体验 赋能内容新灵感》为主题分享了百度APP内容生态的最新成果。 内容全面AI焕新 ， AI创作者同比增长245% 百度APP的生态繁荣离不开强大的产品力。借助AI创新, 百度APP对创作的全链路进行了重构升级， ...

文心大模型仍在持续训练中。 本文为IPO早知道原创 作者｜Stone Jin 微信公众号｜ipozaozhidao 据IPO早知道消息，在11月12日举办的以"应用来了"为主题的百度世界2024上，百度首席技术官王 海峰公布了文心一言用户规模已达到4.3亿。 事实上，自2023年3月16日发布文心一言以来，百度文心大模型不断升级，知识增强、检索增强以 及智能体等技术也在不断进化。 据王海峰介绍，在检索增强方面，百度研发了「理解-检索-生成」协同优化的检索增强技术，提升 了大模型技术及应用效果；面向不同应用场景的生图需求，进一步研发了检索增强的文生图技术，既 可以生成精确的图片，也可以进行泛化生图。 具体来讲： 首先，基于大模型对用户的需求进行分析理解，自动规划精确或泛化方案，比如对哪些实体进行增 强；接着在增强阶段，对需要增强的实体，检索并选择相应的参考图。最后在生成阶段，自研了多模 可控生图大模型，一方面，通过局部注意力计算，在保持实体特征不变的情况下，实现了图像的高泛 化生成，比如根据牛顿的肖像，生成绘本风格的牛顿；另一方面，通过整体注意力计算，进行高精确 的图像生成，比如生成图中的汽车跟原图片保持完全一 ...

大模型进入深度应用期。 本文为IPO早知道原创 作者｜Stone Jin 微信公众号｜ipozaozhidao 据IPO早知道消息，以"应用来了"为主题的百度世界2024于11月12日在上海召开。 另一方面，10万卡规模超大集群需要占据大概10万平方米空间，相当于13个标准足球场；每天则要 消耗大约300万千瓦时的电力，相当于北京市东城区一天的居民用电量。这种对于空间和能源的巨大 需求，远超传统机房部署的承载能力，而跨地域机房部署又会给网络通信带来巨大挑战。 通过设计高效的网络拓扑结构，结合模型切分优化和跨地域无拥塞高性能网络方案，百舸能够在横跨 几十公里的多机房组成的万卡规模的集群上，将单一模型训练任务的性能折损控制在4%以内，达到 业界最领先水平。 本文由公众号IPO早知道（ID：ipozaozhidao）原创撰写，如需转载请联系C叔↓↓↓ 目前，百度智能云拥有中国最大的大模型产业落地规模。超过六成的央企和大量的民营企业，正在联 合百度智能云进行AI创新。百度智能云千帆大模型平台已经帮助客户精调了3.3万个模型、开发了77 万个企业应用、文心大模型日均调用量超过15亿次。 百度集团执行副总裁、百度智能云事 ...

Investment Rating - The report maintains a "Buy" rating for Baidu Group-SW (9888.HK) with a target price of 165 HKD, compared to the current price of 88.95 HKD [3]. Core Views - Baidu Group's total revenue for Q3 2024 is expected to decline by 3.9% year-on-year to 33.12 billion RMB, with core revenue declining by 2.0% to 26.04 billion RMB. The core non-GAAP operating profit is projected to be 6.39 billion RMB, down 4.2%, resulting in an operating margin of 24.5% [1]. - The online marketing business remains weak, with a 5.0% decline in online marketing services to 18.72 billion RMB, primarily due to a sluggish macro environment and limited marketing investments from major advertisers [1]. - Non-online marketing revenue is expected to grow by 6.2% year-on-year to 7.33 billion RMB, driven by improvements in cloud services and adjustments in the management of the document and library business [1]. - Baidu's AI initiatives are progressing well, with significant developments in AI infrastructure and applications, including the launch of new AI products and platforms [1]. Summary by Sections Revenue Forecast - Total revenue for 2024 is projected at 132.995 billion RMB, with a slight decline of 1.19% year-on-year. The core revenue is expected to be 103.596 billion RMB, showing minimal growth [2]. Profitability Metrics - Non-GAAP net profit for 2024 is forecasted at 26.478 billion RMB, reflecting a decrease of 7.89% year-on-year. The non-GAAP EPS is projected to be 9.44 RMB [2]. AI Business Developments - Baidu's AI business is expected to show healthy growth, with significant advancements in AI applications and infrastructure, including the introduction of the "百舸 AI 异构计算平台 4.0" and "千帆大模型平台 3.0" [1][8]. Market Position - Baidu's market share in the intelligent PPT industry reached 80% by June 2024, with over 47 million visits to its AI features by September 2024 [1]. Valuation Metrics - The report assigns a valuation of 12.0x PE for advertising, 4.5x PS for smart cloud, and 4.5x PS for other businesses, maintaining a target price of 165 HKD [1].

Investment Rating - The report maintains a "Buy" rating for Baidu Group-SW (09888 HK) [1] Core Views - Baidu's Q3 2024 revenue is expected to be 33 4 billion yuan, a year-on-year decline of 3%, with Baidu Core revenue at 26 3 billion yuan, down 1% year-on-year [2] - Adjusted operating profit is forecasted at 6 6 billion yuan, with Baidu Core's adjusted operating profit margin at 24% [2] - Advertising revenue is expected to decline by nearly 5% year-on-year due to macroeconomic impacts, while cloud computing revenue is projected to grow by nearly 14% year-on-year [3] - Baidu's AI business continues to gain traction, with its generative AI and cloud computing leading in the Chinese market [3] - The company's AI-driven search transformation is expected to further enhance its core business capabilities [4] Financial Performance Summary Revenue and Profit - Total revenue for 2024E is projected at 133 582 million yuan, a slight decline of 0 76% year-on-year [1] - Non-GAAP net profit attributable to shareholders is expected to be 27 153 million yuan in 2024E, down 5 55% year-on-year [1] - EPS (Non-GAAP) for 2024E is forecasted at 9 68 yuan per share [1] Segment Performance - Advertising revenue remains under pressure, with a projected 5% decline in Q3 2024 [3] - Cloud computing revenue is expected to grow by 14% year-on-year in Q3 2024, driven by AI contributions [3] - Non-cloud and non-advertising businesses are expected to remain stable [3] AI and Cloud Computing - Baidu's AI business has established a leading position in China's generative AI and cloud computing markets, with a 32 4% share in the "Model as a Service (MaaS)" market and a 17% share in the "AI Large Model Solutions" market [3] - The company's AI-driven search transformation is expected to further enhance its core business capabilities [4] Valuation and Shareholder Returns - The 2024E Non-GAAP P/E ratio is projected at 8 45x [1] - The company's ongoing share buybacks reflect its commitment to shareholder returns [4] Financial Projections Income Statement - Total revenue for 2024E is projected at 133 582 million yuan, with a slight decline of 0 76% year-on-year [1] - Non-GAAP net profit attributable to shareholders is expected to be 27 153 million yuan in 2024E, down 5 55% year-on-year [1] Balance Sheet - Total assets are projected to grow from 406 759 million yuan in 2023A to 477 993 93 million yuan in 2026E [12] - The debt-to-equity ratio is expected to decrease from 35 44% in 2023A to 29 15% in 2026E [14] Cash Flow - Operating cash flow is expected to increase from 36 615 million yuan in 2023A to 45 902 06 million yuan in 2026E [13] - Capital expenditures are projected to decrease from 4 335 million yuan in 2023A to 3 400 million yuan in 2026E [13] Key Financial Ratios - ROE is expected to increase from 8 34% in 2023A to 8 48% in 2026E [14] - The gross margin is projected to remain stable, ranging from 50 82% to 52 15% from 2024E to 2026E [14] - The net profit margin is expected to improve from 15 09% in 2023A to 18 49% in 2026E [14]

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Investment Rating - The report maintains a "Buy" rating for the company with a target price of 132.37 HKD, based on a projected adjusted PE of 12x for 2024, corresponding to a market capitalization of 338.7 billion CNY [2][8]. Core Insights - The company reported Q2 2024 revenue of 33.93 billion CNY, slightly below Bloomberg consensus of 34.11 billion CNY, with an adjusted net profit of 7.40 billion CNY, exceeding the consensus estimate of 6.68 billion CNY [1]. - Core advertising remains under pressure, while cloud business shows strong growth. The core revenue was 26.69 billion CNY, up 1.1% year-over-year, with advertising revenue at 19.2 billion CNY, down 2.0% year-over-year, which was better than the expected decline of 2.9% [1]. - Cost control is excellent, with a core gross margin of 59.2% and an operating profit margin (OPM) of 21.0%, which is above market expectations [1]. - AI large models are restructuring the company's business, with significant increases in user engagement and application. The daily invocation of the Wenxin large model has exceeded 600 million times, and nearly 18% of search results are generated by AI [1]. - The autonomous driving service "Luobo Kuaipao" saw a 26% year-over-year increase in order volume, reaching approximately 899,000 orders in Q2 2024 [1]. Financial Summary - The company expects adjusted net profits of 27.4 billion CNY, 29.2 billion CNY, and 30.3 billion CNY for 2024, 2025, and 2026 respectively, with revenue projections of 135 billion CNY, 142.9 billion CNY, and 151.6 billion CNY for the same years [2][8]. - The report outlines a forecast for core revenue growth, with online marketing expected to decline slightly in the near term, while cloud services are projected to grow significantly [7].

Investment Rating - The report indicates that the company is aiming for an IPO with a target valuation of approximately 50.2 billion USD (360 billion RMB) and plans to raise 119.4 million USD [5][8]. Core Insights - The company, WeRide, is recognized as a pioneer in the autonomous driving sector, being the first to launch a Level 4 autonomous taxi service globally [4][10]. - Despite significant investments and a strong operational presence in multiple countries, the company has yet to achieve profitability, with substantial ongoing research and development costs [17][19]. - The company is shifting its business model towards a consumer-oriented ride-hailing service, aiming to compete directly with other players in the market [26]. Summary by Sections Company Overview - WeRide, founded by former Baidu executive Han Xu, has developed an autonomous driving app called "WeRide Go" and operates in cities like Guangzhou and Beijing [3][4]. - The company has received significant backing from various investors, including the Renault-Nissan-Mitsubishi Alliance, which is set to invest 97 million USD post-IPO [6][9]. Financial Performance - The company reported revenues of 4 billion RMB in 2023, a decrease of 24% year-on-year, with a significant drop in product revenue [13][16]. - The revenue structure has shifted from product sales to technology services, with service revenue growing significantly due to contracts with major suppliers like Bosch [12][16]. Business Model - WeRide's revenue generation is based on two main models: selling vehicles and providing technology services [10][11]. - The company employs a "light asset" model, sourcing vehicles from OEMs rather than manufacturing them in-house [11][12]. Market Position and Strategy - The company is positioned as a leader in the autonomous driving space, holding licenses in multiple countries and operating in 30 cities globally [4][10]. - Future plans include a focus on expanding the ride-hailing service, leveraging IPO funds for technology development and fleet commercialization [24][26].

Investment Rating - The investment rating for Baidu Group-SW is "Buy" (maintained) [1] Core Insights - The company's revenue for Q2 2024 was slightly below market expectations, while the adjusted net profit exceeded market expectations. The revenue was 33.9 billion yuan, a year-on-year decrease of 0.36%, and the Non-GAAP net profit was 7.4 billion yuan, down 8% year-on-year but better than Bloomberg consensus [3][4] - The advertising business continues to face external pressures, with internal generative AI transformations impacting short-term monetization efficiency. Core revenue for Q2 was 26.7 billion yuan, a year-on-year increase of 1%, with online marketing revenue at 19.2 billion yuan, down 2% year-on-year [3][4] - Non-advertising business is driven by generative AI, particularly in cloud computing, which saw a 14% year-on-year growth in revenue for Q2. The generative AI and foundational model revenue continued to grow significantly, accounting for 9% of cloud revenue in Q2 [4] - Despite increased investments in generative AI, strict cost control has improved profitability, with Non-GAAP gross margin and operating margin at 59.6% and 26.2%, respectively, both better than Bloomberg consensus [4] Financial Forecasts - The revenue forecast for Baidu Group for 2024 is 134.03 billion yuan, with a slight decrease of 0.42% compared to 2023. The Non-GAAP net profit is projected to be 29.03 billion yuan, with a growth rate of 0.97% [2][8] - The company has adjusted its Non-GAAP net profit forecasts for 2024-2026 from 29.8 billion, 31.8 billion, and 34.1 billion yuan to 29.0 billion, 30.4 billion, and 32.6 billion yuan, respectively [8]