BIDU(BIDU) 招银国际·2025-02-19 02:15Investment Rating - The report assigns a "BUY" rating for Baidu, with a target price of US90.16 [2][11]. Core Insights - Baidu's 4Q24 results showed Baidu Core revenue of RMB27.7 billion, exceeding Bloomberg consensus estimates by 3.5%. The non-GAAP operating profit for Baidu Core reached RMB4.6 billion, 1% above consensus [1]. - The cloud services revenue grew by 26% year-over-year, driven by strong AI-related GPU cloud revenue growth and cross-selling opportunities, indicating a sustainable growth trend into 2025 [1][5]. - The forecast for the core search ads business revenue decline has been narrowed to 0.7% for 2025, reflecting better-than-expected business adjustments [1][9]. Financial Performance Summary - For FY24, Baidu Core revenue totaled RMB104.7 billion, a 1.3% year-over-year increase, while non-GAAP operating profit was RMB23.9 billion, down 3% year-over-year [1][6]. - The adjusted net profit for FY25 is forecasted at RMB26.99 billion, with a slight decline of 0.0% year-over-year, while revenue is expected to grow by 4.3% to RMB138.8 billion [6][15]. - Non-GAAP operating profit margin for Baidu Core was 16.8% in 4Q24, with expectations of recovery alongside the ads business in 2H25 [1][5]. Revenue and Profitability Forecast - The revenue forecast for 2025 has been raised by 1% to RMB138.8 billion, with a 4% increase in non-GAAP net profit forecast [1][9]. - The adjusted EPS for FY25 is projected at RMB77.17, with a P/E ratio of 10.3x [6][15]. - The gross margin is expected to be 51.0% for FY25, reflecting a slight improvement from previous estimates [9][15]. Share Performance and Valuation - Baidu's market capitalization stands at approximately US115.13 and a low of US51.7 for Baidu Core, US59.6 for net cash and other investments [11][12].