＜Research＞TF Securities: BIDU-SW ST Rev. May be Pressed by AI Upgrade, Rating Kept Buy

　　BIDU-SW (09888.HK) -5.650 (-5.678%) Short selling $256.99M; Ratio 31.766% reported 1Q core revenue of RMB23.8 billion, up 3.5% YoY, with online marketing revenue of RMB17.1 billion, up 3% YoY, mainly due to weaker-than-expected macro-economic recovery and limited visibility of advertisers' improvement, TF Securities said in its report. The broker expected online marketing revenue growth to remain stable in the coming quarters.

　　The report said Baidu's resilient quarterly performance may reflect operational resilience in a complex macroeconomic environment, as well as the solid development of its AI business, ERNIE Bot. The broker expected that Baidu's short-term revenue may be squeezed by the AI upgrade, and therefore adjusted its 2024-26 revenue forecast to RMB138.9 billion, RMB153.2 billion and RMB170.3 billion, vs RMB139.4 billion, RMB153.8 billion and RMB171.2 billion in previous values.

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　　The broker also adjusted its 2024-26 non-GAAP operating profit on the company to RMB28 billion, RMB32 billion and RMB35.5 billion, vs RMB27.9 billion, RMB32.1 billion and RMB35.7 billion in previous values, respectively. The broker gave BIDU-SW a target price of HKD139 and maintained a Buy rating.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-15 12:25.)

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