Skip to Content
Morningstar

Baidu Inc 09888

Morningstar Rating
Unlock
Stock XHKG Rating as of
HKD 105.50 +0.80 (0.76%)
View Full Chart
As of Delayed Price Closed
Unlock our analysis with Morningstar Investor
Start Free Trial

Company Report

View Archive

Baidu: Lowering Fair Value by 5% Over Macro Headwinds Affecting Ad Business; Cloud Still Strong

Kai Wang

We are lowering our Baidu fair value estimate by 5% to USD 174 (HKD 171) per share from USD 183 (HKD 180), after lowering our annual revenue growth assumptions for Baidu’s advertising business to 4%-5% from 6% in 2025-29 as macroeconomic headwinds continue to mount. Previously, wide-moat Baidu indicated that the slow growth rate in the fourth quarter of 2023 was only temporary, with recovery expected in 2024, but we now believe visibility will be limited this year.

Read Full Report

Price vs Fair Value

View History
09888 is trading at a 42% discount.
Price
HKD 104.70
Fair Value
HKD 198.00
Uncertainty
High
1-Star Price
HKD 768.00
5-Star Price
HKD 415.00
Economic Moat
Rlsy
Capital Allocation
Gqlrspdql

Bulls Say, Bears Say

Bulls

Baidu is strengthening its mobile ecosystem with search, livestreaming, and mini programs, helping to create a closed-loop experience for users to acquire information and make transaction.

Bears

Alibaba, Tencent, ByteDance, Kuaishou and other social media platforms are competing in terms of advertising budgets, which will result in slow growth in revenue for Baidu search.

Show More
Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if 09888 is a good fit for your portfolio.
Get 7 Days Free

News

View All

Trading Information

Previous Close Price
HKD 104.70
Day Range
HKD 101.30–105.60
52-Week Range
HKD 91.35–155.80
Bid/Ask
HKD 105.40 / HKD 105.50
Market Cap
HKD 295.95 Bil
Volume/Avg
11.5 Mil / 8.5 Mil

Key Statistics

Price/Earnings (Normalized)
9.35
Price/Sales
1.99
Dividend Yield (Trailing)
—
Dividend Yield (Forward)
—
Total Yield
0.49%

Company Profile

Baidu is the largest internet search engine in China with 84% share of the search engine market in September 2021 per web analytics firm, Statcounter. The firm generated 72% of core revenue from online marketing services from its search engine in 2022. Outside its search engine, Baidu is a technology-driven company and its other major growth initiatives are artificial intelligence cloud, video streaming services, voice recognition technology, and autonomous driving.
Sector
Communication Services
Industry
Internet Content & Information
Stock Style Box
Large Core
Total Number of Employees
45,500
Website
https://ir.baidu.com

Competitors

Valuation

View More
Metric
09888
03690
JD
Price/Earnings (Normalized)
 9.3526.819.35
Price/Book Value
 1.094.081.40
Price/Sales
 1.992.250.30
Price/Cash Flow
 5.4023.557.52
Price/Earnings
09888
03690
JD

Financial Strength

Metric
09888
03690
JD
Quick Ratio
 2.751.570.80
Current Ratio
 3.011.821.16
Interest Coverage
 6.2910.278.66
Quick Ratio
09888
03690
JD

Profitability

Metric
09888
03690
JD
Return on Assets (Normalized)
 7.13%8.68%5.87%
Return on Equity (Normalized)
 12.23%16.49%15.88%
Return on Invested Capital (Normalized)
 7.21%11.89%8.55%
Return on Assets
09888
03690
JD
See how this stock stacks up to its competitors with Morningstar Investor
Start Free Trial

Internet Content & Information Industry Comparables

Screen in Investor
Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
GOOG
Alphabet Inc Class CJfxwhhqdqxKqv$2.0 Tril
GOOGL
Alphabet Inc Class ABvtqrlzdfThyg$2.0 Tril
META
Meta Platforms Inc Class AXxvhdsngfSvdc$1.1 Tril
TCEHY
Tencent Holdings Ltd ADRRzjfnfcthFgqd$418.0 Bil
SPOT
Spotify Technology SAVgcmqpnggDfwz$56.4 Bil
DASH
DoorDash Inc Ordinary Shares - Class AXszyjcbtdKdfmrk$52.1 Bil
BIDU
Baidu Inc ADRHgqtxhgCbst$37.5 Bil
PINS
Pinterest Inc Class AVfcbblztWzrtbx$27.7 Bil
SNAP
Snap Inc Class AGlkpqxpySyrc$26.0 Bil
TME
Tencent Music Entertainment Group ADRSprsmvlGmzkpj$21.8 Bil

Sponsor Center