BIDU(09888) 国金证券·2024-11-22 03:57Investment Rating - The report maintains a "Buy" rating for Baidu Group-SW (09888.HK) [3] Core Insights - The company is undergoing an AI-driven transformation, but its advertising business still requires improvement. The intelligent cloud segment shows steady growth, and the core profits of Baidu remain on an upward trend [4] Financial Performance Summary - In Q3 2024, Baidu reported revenues of 33.6 billion yuan, a year-on-year decrease of 3%. The Non-GAAP net profit for the same period was 5.9 billion yuan, down 19% year-on-year [4] - Baidu's core revenue reached 26.5 billion yuan in Q3 2024, a slight decline of 0.29% year-on-year, while the Non-GAAP net profit attributed to the core business was 7.54 billion yuan, an increase of 17% year-on-year [4] - Online marketing revenue was 18.8 billion yuan, down 4% year-on-year, impacted by a weak macro environment. Non-online marketing revenue was 7.7 billion yuan, up 12% year-on-year, primarily driven by the intelligent cloud business [4] AI and Intelligent Driving Developments - The daily API call volume for the Wenxin large model reached 1.5 billion, with the user base for Wenxin Yiyan reaching 430 million. The intelligent cloud platform has assisted clients in fine-tuning models for 33,000 instances and developing 770,000 enterprise applications [4] - The autonomous driving service "Luo Bo Kuaipao" saw a 20% year-on-year increase in order volume, reaching 988,000 orders in Q3 2024, with a market share exceeding 70% for fully autonomous driving orders [4] iQIYI Performance - iQIYI's revenue in Q3 2024 was 7.2 billion yuan, down 10% year-on-year, with a Non-GAAP net profit of 480 million yuan, a decrease of 23% year-on-year. Membership revenue fell by 9% to 4.4 billion yuan, while advertising revenue dropped by 20% to 1.3 billion yuan [4] Profit Forecast and Valuation - The report forecasts Non-GAAP net profits for Baidu of 26.6 billion yuan, 28.2 billion yuan, and 30.9 billion yuan for 2024, 2025, and 2026 respectively. The current stock price corresponds to a Non-GAAP PE of 8.17, 7.71, and 7.04 for the respective years [4]