Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Baidu's fourth-quarter and full-year 2024 financial results reveal a company navigating both challenges and opportunities, driven by its ongoing transformation into an AI-centric entity.</li><li>The reported total revenues for the fourth quarter amounted to RMB 34.1 billion, a 2% decrease year-over-year, while full-year revenues were down by 1%, at RMB 133.1 billion.</li><li>Despite these slight declines, Baidu Core's revenue performance was stable, increasing by 1% for both the fourth quarter and full year.</li></ul>

Baidu's fourth-quarter and full-year 2024 financial results reveal a company navigating both challenges and opportunities, driven by its ongoing transformation into an AI-centric entity.The reported total revenues for the fourth quarter amounted to RMB 34.1 billion, a 2% decrease year-over-year, while full-year revenues were down by 1%, at RMB 133.1 billion.Despite these slight declines, Baidu Core's revenue performance was stable, increasing by 1% for both the fourth quarter and full year.

Baidu Inc.: When Will Its Efforts Towards Generative AI

Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

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

<ul>
<li>BIDU reported C4Q24 top line, non-GAAP op. profit and GAAP net income in-line, (22%) and (7.0%) vs. our est. and (3.7%), (24%) and in line vs. cons. </li>
<li>While monetization on a largely in-house app repertoire can ensure AI revenue to start kicking in in C2H25, we are concerned on the size of this revenue, </li>
<li>We maintain our SELL but raise TP to US$80 to reflect a short-term trading opportunity around AI monetization.</li>
</ul>


BIDU reported C4Q24 top line, non-GAAP op. profit and GAAP net income in-line, (22%) and (7.0%) vs. our est. and (3.7%), (24%) and in line vs. cons. 
While monetization on a largely in-house app repertoire can ensure AI revenue to start kicking in in C2H25, we are concerned on the size of this revenue, 
We maintain our SELL but raise TP to US$80 to reflect a short-term trading opportunity around AI monetization.


[Baidu, Inc. (BIDU US, SELL, TP US$80) TP Change]: AI Monetization by How Much & At What Cost?

<ul>
<li>We expect BIDU to post C4Q24 top line,non-GAAP operating profit and GAAP net income (5.1%), (7.7%) and (8.7%) vs. consensus.We expect BIDU to issue C1Q25 top line guidance (1.2%) vs.consensus;</li>
<li>BIDU's problem is not only manifested in the loss of the Apple contract,it is also the loss of first mover advantage in both Generative Artificial Intelligence and Autonomous Driving Services. </li>
<li>Losing traffic advantage, BIDU has become a self-containing app ecosystem but all pillars of this ecosystem is facing intensifying competition. SELL @US$78.</li>
</ul>


We expect BIDU to post C4Q24 top line,non-GAAP operating profit and GAAP net income (5.1%), (7.7%) and (8.7%) vs. consensus.We expect BIDU to issue C1Q25 top line guidance (1.2%) vs.consensus;
BIDU's problem is not only manifested in the loss of the Apple contract,it is also the loss of first mover advantage in both Generative Artificial Intelligence and Autonomous Driving Services. 
Losing traffic advantage, BIDU has become a self-containing app ecosystem but all pillars of this ecosystem is facing intensifying competition. SELL @US$78.


[Baidu, Inc. (BIDU US, SELL, TP US$78) Preview]: Baidu’s Problem Is Deep Rooted and Getting Worse

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>NEV retail volume increased by 51% YoY in November and 41% YoY for first eleven months.</li>
<li>Jiyue Auto, as a car maker subsidiary of Baidu, is dismissing employees.</li>
<li>Hisense, a home appliance producer, lays off 30,000 employees of its total 110,000.</li>
</ul>


NEV retail volume increased by 51% YoY in November and 41% YoY for first eleven months.
Jiyue Auto, as a car maker subsidiary of Baidu, is dismissing employees.
Hisense, a home appliance producer, lays off 30,000 employees of its total 110,000.


China Consumption Weekly (16 Dec 2024): NEV Industry Nov., Baidu, Hisense, Boss Zhipin,

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Event-Driven

<ul>
<li>PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US listed China companies.</li>
<li>The Hong Kong visit was on the back of the 26th Aug 2022 announcement by PCAOB and CSRC that they had entered into an agreement with US authorities for access.</li>
<li>In this note, we'll talk about the latest developments, possible outcomes and implications.</li>
</ul>


PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US listed China companies.
The Hong Kong visit was on the back of the 26th Aug 2022 announcement by PCAOB and CSRC that they had entered into an agreement with US authorities for access.
In this note, we'll talk about the latest developments, possible outcomes and implications.


China ADRs Delisting - Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

China

Baidu, Inc. operates an Internet search engine. The Company offers algorithmic search, enterprise search, news, MP3, and image searches, voice assistance, online storage, and navigation services. Baidu serves clients globally.

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Baidu (BIDU US)

Baidu Inc.: When Will Its Efforts Towards Generative AI

Baidu's fourth-quarter and full-year 2024 financial results reveal a company navigating both challenges and opportunities, driven by its ongoing...

Baptista Research

[Baidu, Inc. (BIDU US, SELL, TP US$80) TP Change]: AI Monetization by How Much & At What Cost?

BIDU reports in-line financials for Q4, concerns remain on AI revenue potential, analysts maintain SELL rating but raise price target to $80.

Blue Lotus Research Institute

[Baidu, Inc. (BIDU US, SELL, TP US$78) Preview]: Baidu’s Problem Is Deep Rooted and Getting Worse

BIDU faces challenges with loss of Apple contract and first mover advantage in AI and autonomous driving, leading to intensifying competition and...

Blue Lotus Research Institute

China Consumption Weekly (16 Dec 2024): NEV Industry Nov., Baidu, Hisense, Boss Zhipin,

NEV retail volume increased by 51% YoY in November. Jiyue Auto, as a subsidiary of Baidu, is dismissing employees. Hisense, a home appliance...

Ming Lu

China ADRs Delisting - Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Baidu Inc.: When Will Its Efforts Towards Generative AI

Baidu's fourth-quarter and full-year 2024 financial results reveal a company navigating both challenges and opportunities, driven by its ongoing...

Baptista Research

[Baidu, Inc. (BIDU US, SELL, TP US$80) TP Change]: AI Monetization by How Much & At What Cost?

​BIDU reports in-line financials for Q4, concerns remain on AI revenue potential, analysts maintain SELL rating but raise price target to $80.

Blue Lotus Research Institute

[Baidu, Inc. (BIDU US, SELL, TP US$78) Preview]: Baidu’s Problem Is Deep Rooted and Getting Worse

​BIDU faces challenges with loss of Apple contract and first mover advantage in AI and autonomous driving, leading to intensifying competition and...

Blue Lotus Research Institute

China Consumption Weekly (16 Dec 2024): NEV Industry Nov., Baidu, Hisense, Boss Zhipin,

NEV retail volume increased by 51% YoY in November. Jiyue Auto, as a subsidiary of Baidu, is dismissing employees. Hisense, a home appliance...

Ming Lu

China ADRs Delisting - Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US...

Sumeet Singh

BIDU reports in-line financials for Q4, concerns remain on AI revenue potential, analysts maintain SELL rating but raise price target to $80.

BIDU faces challenges with loss of Apple contract and first mover advantage in AI and autonomous driving, leading to intensifying competition and...