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Zhongjin: Lower Baidu's target price to 134.5 Hong Kong dollars, and the development of Luobo Kuai Pao attracts market follow
Golden Ten Data reported on July 17 that CICC issued a report that it is expected that Baidu (09888. HK) revenue in the second quarter fell slightly year-on-year to RMB33.7 billion (the same below); Core revenue decreased slightly year-on-year to MOP26.2 billion. The net profit of non-GMP was 6.3 billion yuan, of which Baidu’s core non-GMP net profit was 6 billion yuan. According to the report, considering the pressure on advertising revenue, the revenue forecast for 2024 and 2025 was lowered by 2% to 1,370 and 144.1 billion yuan, the non-GAC net profit forecast was maintained, and the “outperform” rating was maintained, and the target price of US stocks and Hong Kong stocks was lowered by 8.4% to US$138.8 and HK$134.5 respectively, taking into account the downward revision of the 2024 earnings forecast of core advertising.