＜Foresight＞Brokers Expect BIDU-SW's 1Q Non-GAAP NP to Fall 2%+; Focus on Ad Recovery & Shr Buyback Guidance

　　BIDU-SW (09888.HK) +1.300 (+1.216%) Short selling $23.36M; Ratio 7.615% will release its 1Q24 results next Thursday (16th).

　　Affected by the weak demand from the advertising industry including advertisements for China's home, investment promotion and auto, the incremental contribution of AI to the advertising business that still takes time to be realized, as well as its lower margin dragged down by the investment in the AI technology field, BIDU-SW's 1Q24 non-GAAP net profit attributable to shareholders will range from RMB5.375 billion to RMB5.966 billion as forecasted by 8 brokers summarized by our reporters, representing an incline of -6.1%/ +4.2% YoY from RMB5.727 billion recorded in the same period of 2023. The median was RMB5.595 billion, down 2.3% YoY.

　　Related NewsRatings, TPs on BIDU-SW (09888.HK) (Table)

　　Investors will be concerned about the latest guidance on the advertising business by BIDU-SW's management including the recovery time for demand, cost saving and efficiency gaining measures for ERNIE foundation model and its effectiveness, strategies on how to capture demand for the commercial side and AI foundation models in the future, and share buyback guidance, etc..

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　　Broker│1Q24 Non-GAAP Net Profit Forecast (RMB)│YoY Change

　　BOCI│5.966 billion│+4.2%

　　Nomura│5.686 billion│-0.7%

　　Goldman Sachs│5.676 billion│-0.9%

　　CICC│5.64 billion│-1.5%

　　Citi│5.549 billion│-3.1%

　　Daiwa│5.489 billion│-4.2%

　　UBS│5.394 billion│-5.8%

　　CCBI│5.375 billion│-6.1%

　　Based on BIDU-SW's 1Q23 non-GAAP net profit of RMB5.727 billion

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-05-09 12:25.)

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