Jingu financial news | Sinolink Securities released a research report, Baidu (09888) achieved revenue of 33.6 billion yuan in 2024Q3, a decrease of 3% year-on-year. The Non-GAAP net income attributable to Baidu's shareholders in 2024Q3 was 5.9 billion yuan, a decrease of 19% year-on-year. Baidu's core revenue in 2024Q3 was 26.5 billion yuan, down by 0.29% year-on-year. The Non-GAAP net profit attributable to Baidu's core was 7.54 billion yuan, an increase of 17% year-on-year. Online marketing revenue reached 18.8 billion yuan, a decrease of 4% year-on-year. The weak macro environment has put certain pressure on the advertising business, and AI's modification of user search products has had a certain impact on short-term commercialization. Non-online marketing revenue reached 7.7 billion yuan, up by 12%, mainly driven by Asia Vets cloud business.

The bank stated that in 2024Q3, iQiyi's revenue was 7.2 billion yuan, a 10% decrease year-on-year; Non-GAAP net income was 0.48 billion yuan, down by 23% year-on-year. Membership revenue in Q3 of 2024 reached 4.4 billion yuan, a 9% decrease year-on-year. The performance of content lines in Q3 was relatively weak, and membership revenue growth was under pressure. Advertising revenue was 1.3 billion yuan, a 20% decrease. Brand advertising decreased while performance advertising increased slightly. Content distribution revenue was 0.81 billion yuan, an increase of 52% year-on-year.

The bank expects the company's Non-GAAP net income attributable to the parent company to be 26.6/28.2/30.9 billion yuan for the years 2024-2026. The current stock price corresponds to a Non-GAAP P/E ratio of 8.17/7.71/7.04X, maintaining a "buy" rating.