4Q23: Results In Line; All Eyes On AI-powered Ads And Ernie Bot In 2024
Baidu’s 4Q23 results were within expectations. Revenue grew 6% yoy to Rmb35b, in line with consensus estimates. Gross margin expanded 1.4ppt yoy to 50.2%, within consensus expectations. Non-GAAP operating profit was Rmb7.1b, up 9% yoy, while non-GAAP operating profit margin came in at 20%. Non-GAAP net profit improved by 44% yoy to Rmb7.8b on one-off gains, exceeding consensus estimates by 22%. Maintain BUY with a lower target price of HK$128.00 (US$142.00).
