Friday, July 31, 2009

Youa layout changed

Baidu is updating Youa's product information
database and layout, Sohu reports. The new
page uses tabs for basic description, specs,
pictures, complaints and comments.

Youa also announced the "Ark Project" to set up
and deploy a standard product database containing
product specifications, user reviews, online purchasing,
price quotes, evaluations and information on related
accessories. The database will include standard price
ranges, but model numbers not included in the
database cannot be sold by merchants on the YouA
platform. A spokesperson for Baidu YouA saidd that
the "Ark Project" is an open-source project that will
draw on the information resources of YouA and other
B2C platforms, informative websites and the
Baidu Knows community to build up the database.

More analyst action: DB, JPM, Nomura, CS

Deutsche upped PT from $374 to $408.
Deutsche Bank said they got a peek into the black box,
conducting an on-line, interactive tutorial of Baidu's
many properties and services. Deutsche Bank said
they have also concluded that pricing continues to
improve, and that market share should be
steady-to-up. The firm also raised their 2009/2010 EPS
by 2% and 5% to $6.48 and $10.48, respectively.

JPM's Dick Wei sets a PT of $390. Expects revenue to
grow 40 to 50% for the next couple of years.

"Baidu has a significant lead in market share, there is
only 25 percent penetration and people know the brand,"
said Wei. "The share price still has room to rise." Wei
says Baidu is one of J.P. Morgan's top picks in the sector
and recommends an overweight for the stock.

Nomura downgraded from "neutral" to "reduce" with a PT
of $311.3.
"It is trading at a premium to pre-financial crisis valuations,"
said Jin Yoon, an analyst at Nomura International. "Where
does the stock go from here? Its overheated", it's a case of
liking the company but not the stock, said Yoon. "The
company is still highly correlated to the broader economy,
which is not out of the woods yet," said Yoon.

Credit Suisse says Baidu is expensive and has a target price
of $248, implying a PE ratio of 39 times forecast
2009 earnings. Credit Suisse reckons traffic acquisition
cost (TAC) -- a key barometer of profit margins -- as a
percent of total gross revenue rose 16.0 percent in second
quarter, from 12.7 percent a year earlier, and could hit
17.3 percent in 2010. ($=6.83 yuan)

Wednesday, July 29, 2009

Teaming up with Discovery China

A new subdomain, with ads,
added for Discovery Channel, China. Revenue
sharing as per TAC agreements.

Analysys on Q2 09: Baidu at 61%

Google at 29 plus %, revenue market share (not
user search share). Google has dropped from 30-plus,
and Baidu has climbed from 59% in Q1 09.

Tuesday, July 28, 2009

The many faces of the monopoly

Baidu currently has a total of 332 subdomains (,
divided into 3 main categories. (Courtesty kissbaidu).

179 categories of products and services: (subdomains)

1 Baidu top-level domain
2 Baidu Post Bar
3 Baidu Post Bar
4 Baidu Post Bar
5 Baidu Post Bar (WAP version)
6 Baidu Post Bar (used)
7 Baidu mp3 search
8 Baidu mp3 search
9 Baidu mp3 search
10 Baidu Image Search
11 Baidu Image Search
12 Baidu E-mail news subscription
13 Baidu News
14 Baidu News
15 Baidu Knows
16 Baidu Knows
17 Baidu Knows
18 Baidu Space
19 Baidu Space
20 Baidu Encyclopedia
21 Baidu Encyclopedia
22 Baidu Regards
23 Baidu Index
24 Baidu search engine ranking system bid
25 Baidu bid
26 Baidu Television
27 Baidu Zip Code
28 Baidu map
29 Baidu search area
31 Baidu Guoxue
32 Baidu Dictionary
33 Baidu document search
34 Baidu Mobile Entertainment
35 found Baidu Super Pa
36 Baidu flash search
37 Baidu website
38 Baidu mobile search
39 Baidu phone
40 Baidu search partners
41 Baidu Search Yellow Pages
42 Pass Baidu - Baidu User Login
43 Baidu currency
44 Baidu search government web sites
45 Baidu education Site Search
46 Children Baidu search
47 Baidu search the hard disk
48 Baidu can do more for you (under Baidu Bar)
49 Baidu snapshot (can not directly open) sample
50 popular Baidu search
51 University Baidu search
52 legal Baidu search
53 Baidu Search WAP version
54 Baidu search PDA Version
55 Baidu search Traditional - Hong Kong
56 Traditional Baidu Search - Taiwan
57 Union Baidu search
58 site Baidu Chinese products list
59 Pa Baidu custom search button
61 WAP version hao123
62 permit personal message Baidu domain
63 Baidu Space
64 Baidu LOGO
65 Baidu Post Bar
66 Baidu Search Home
67 Baidu map
68 Baidu Home
69 Baidu Space
70 Baidu Knows
71 Baidu information
72 Baidu Knows (WAP version)
73 Baidu Index
74 head Baidu MP3
75 Baidu map
76 albums Baidu space domain
77 Baidu Space album pictures
79 Baidu picture album dedicated space
80 Baidu film and television
81 Baidu Television
82 Baidu collection
83 Baidu collection
84 Baidu collection
85 Baidu collection
86 Baidu collection
87 Baidu collection
88 Baidu collection
89 Baidu pictures
90 Baidu ads dedicated second-level domain names
91 Baidu blog search
92 Baidu Search submit blog
93 Baidu picture storage
94 Baidu search-related domain
95 Baidu secondary domain name information
96 Baidu Encyclopedia another secondary domain name
97 Baidu Music Box
98 Baidu video search
99 Baidu video search
100 Baidu video search
101 Baidu video search
102 Baidu video search
103 Baidu video search
104 Baidu video search
105 data Baidu search keyword detection, statistics
106 data Baidu search keyword detection, statistics
107 Baidu Knows
108 Baidu Japan site
109 Center for Baidu personal friends
110 Baidu Industry Report
111 Baidu Book Search
112 Baidu Book Search
113 Baidu Book Search
114 Baidu blind road
115 Baidu Space WAP phone version
116 Baidu Space WAP phone version
117 Baidu MP3 search;
118 antivirus Baidu channels;
119 Baidu Image Search Thumbnails
120 voting system Baidu Post Bar
121 Baidu Industry Report
122 Baidu Knows
123 culture Baidu search
124 Baidu Game Channel
125 Baidu Game Channel
126 game Baidu Channel
127 Baidu玩吧
128 Baidu phone search results
129 Baidu Financial Channel
130 Baidu Financial Channel
131 Baidu Financial Channel
132 Baidu Financial Channel
133 Baidu TV picture exclusive domain
134 Television Baidu - Baidu interactive television
135 Baidu search statistics
136 Baidu Financial Channel
137 Baidu Post Bar online video
138 Baidu Financial Channel
139 Baidu Patent Search
140 Baidu Patent Search
141 Baidu Patent Search
142 Baidu dedicated space to display the secondary domain name template
143 Baidu entertainment channel;
144 Baidu Post Bar album picture address
145 Baidu Image Search Thumbnails
146 Baidu Image Search Thumbnails
147 Baidu Image Search Thumbnails
148 Baidu Image Search Thumbnails
149 Baidu Image Search Thumbnails
150 Baidu Image Search Thumbnails
151 Baidu Image Search Thumbnails
152 Baidu entertainment channel;
153 Baidu entertainment channel;
154 Biadu Post Bar video-specific
155 Baidu entertainment channel;
156 Baidu Knows - Knowledge head;
157 Baidu Security Center;
158 Baidu entertainment channel - television program;
159 Baidu Hi;
160 Baidu voice search;
160 Baidu Personalized Home;
161 Baidu Toolbar;
162 Baidu Toolbar;
163 Baidu Hi friends, can not directly open the sample>>
166 FU Bao-100;
167 Baidu first new song;
168 bid Baidu search engine ranking system
169 Baidu brand area
170 prompted Baidu error page
171 Baidu window;
172 Baidu space in the "personal files" page
173 Futures - Financial Network Baidu and hearing
174 Exchange - Baidu Hexun Financial Network
175 bonds - Baidu Hexun Financial Network
176 gold - Baidu Hexun Financial Network
177 Bank - Financial Network Baidu and hearing
178 insurance - Baidu Hexun Financial Network
179 Baidu MP3 Search
180 on Baidu
180 Baidu mobile search

Market category: 119 subdomains

1 Baidu pan-Media Alliance
2 Baidu recruitment
3 Baidu prerelease music group
4 Baidu music head
5 Baidu Star Programming Contest
6 company Baidu Beijing mail domain name
7 Baidu ranked bid Shanghai Branch
8 Baidu charity
9 (Baidu only open-house)
10 (Baidu only open-house)
12 Baidu surveys sample
14 Investor Relations site
15 Baidu Corporation,
16 Baidu Chinese people around the world
17 Baidu hot zone
18 road Xuanzang
19 Baidu phone tracking system
20 Voting
21 Baidu-mail landing system
22 Baidu-mail landing system
23 Baidu-mail landing system
24 Baidu World
25 Make-up Design Competition
26 internal forum
27 Baidu E-mail system
28 Baidu E-mail system
29 Baidu E-mail system
30 Baidu E-mail system
31 antivirus Baidu Channel
32 Baidu Post Bar Master Plan
33 Baidu customer service system
34 Baidu Alliance certification;
36 Baidu advertising picture, Flash storage secondary domain name
37 Baidu CCTV joint venture
39 Baidu SMS New Year Blessing, 2007 poll
40 Baidu AStar2006 Star Programming Contest;
41 Baidu advertising
42 Baidu activities;
43 Baidu e-mail domain
07 type I show my exclusive business platform into Baidu network;
45 Baidu Union summit in 2007;
46 Baidu boiling point;
47 Union Baidu wireless ads
48 Union Baidu wireless ads
49 Baidu Baidu Internal HR
50 Baidu Knows
51 Baidu ads statistical systems;
52 Baidu advertising statistics
53 Baidu Post Bar
54 trip Xingzhi;
55 Baidu Alliance certification;
56 Baidu Union members
57 Baidu auction message board system
58 Yuanmingyuan relics search
59 questionnaire
60 Baidu ads statistical system
61 Baidu activities
62 Baidu interactive marketing centers;
63 Baidu campaign
64 Baidu Olympics
65 Baidu Card;
66 Baidu TV;
67 Baidu jointly with the Eastern Star
68 Baidu campaign
69 Baidu Homepage for people
70 Baidu prerelease music group
71 Baidu Union Statistics
72 Moto Q cell phone ad in Baidu;
73 Baidu dedicated statistical presentation;
74 Baidu Online World of Art;
75 Baidu Disney theme;
76 Forever Shawn;
77 Baidu Alliance certification;
78 A Dream" film advertising;
79 Baidu Home People dedicated domain name;
80 Haier love the Olympic torch relay;
81 Game related
83 on Baidu (English);
84 Baidu boiling point (Post bar)
85 Baidu Haier streaming media channels;
86 Baidu customer management system;
87 Baidu Herald Tribune;
89 Baidu small orange light;
90 songs for the 2008 Music Festival
91 Internet trading platform
92 Baidu statistical systems;
93 Baidu Adidas Club
94 Baidu Campus Recruitment
95 Baidu 2008 presentation ceremony
96 Baidu content network
97 2009 essay on Baidu
98 Baidu Japan cell phone rental services
98 Baidu wishes you well hi-linked
99 China Nike High School Football League 2008-09
100 2009 Encyclopedia
101 Baidu ranked bid
102 Baidu Tourism
103 Baidu Search open platform
104 Baidu Search open platform
105 Baidu Search open platform
106 Baidu Search open platform
107 Baidu iSmart intelligent interaction
108 Baidu corporate social responsibility
109 Baidu landing page
110 Baidu internal collaboration system
111 Jump Baidu statistics
112 Baidu Survey
113 Baidu Building
114 Baidu music school
115 blue sky 365
116 Baidu information for rural innovation contest
117 Baidu Sales Management System
118 Baidu sales management system, entrance
119 Baidu train
119 Baidu Key words price inquiries, the entrance
120 Baidu Promotion Support Center

Area Search Category: 34 subdomains/regions

1 region Baidu Search - Hunan
2 Baidu search region - Tibet
3 region Baidu Search - Hebei
4 region Baidu Search - Liaoning
5 region Baidu Search - Jilin
6 region Baidu Search - Sichuan
7 region Baidu Search - Jiangxi
8 Baidu search area - Chongqing
9 region Baidu Search - Gansu
10 region Baidu Search - Guangdong
11 Baidu search area - Tianjin
12 region Baidu Search - Zhejiang
13 Baidu search area - Henan
14 Baidu search area - Guizhou
15 Baidu search region - Guangxi
16 region Baidu search - Inner Mongolia
17 Baidu search area - Fujian
18 Baidu search region - Xinjiang
19 Baidu search region - Shanxi
20 region Baidu search - in Qinghai
21 region Baidu Search - Jiangsu
22 Baidu search region - Yunnan
23 Baidu search area - Shandong
24 Baidu search area - Hubei
25 Baidu search area - Shanghai
26 Baidu search area - Beijing
27 region Baidu Search - Shaanxi
28 Baidu search area - Anhui
29 Baidu search area - Hainan
30 Baidu search area - Ningxia
31 Baidu search area - Heilongjiang
32 Baidu search region - Hong Kong
33 region Baidu Search - Taiwan
34 Baidu search area - Macau

Monday, July 27, 2009

Three new initiatives: Japan video search, support site, and games report

Last week, Baidu added a video search function to its
Japanese search engine, along with a feature to limit
the search to websites such as YouTube or MySpace.

Baidu has also launched a brand new online customer
support center at, and published
a report on China's online game industry for H1, 09.
Players use the search engine as their #1 resource for
information on online games.

Analyst reaction: CS, Nomura, Pac Crest,, S&P

CS reiterates underperform, and symbolically lowers PT
from $250 to $248.

Nomura reiterates neutral rating.

China’s $585 billion stimulus package is bolstering Baidu’s
earnings as companies buy ads to sell products needed for
road, bridge and other projects funded by the government,
said Jin Yoon, an analyst at Nomura Holdings Inc. The
economy grew 7.9 percent in the second quarter after
expanding 6.1 percent in the first amid simultaneous
recessions in Europe, Japan and the U.S. “The worst is behind
us,” said Hong Kong-based Yoon. “The second half of this year
will be strong for Baidu.”

"The new bidding system should lead to more targeted results
and higher revenue over time," Steve Weinstein, an analyst
from Pacific Crest Securities said in a note. PT at $410.

S&P reiterates "Strong Sell".

Friday, July 24, 2009

Analyst reaction: DB, CLSA, SIG

Deutsche Bank said Baidu is an "excellent margin story"
and said the transition to new ad system Phoenix Nest
was faster than expected. They reiterated their Buy
rating and $374 price target. They also noted Baidu's
search traffic share seems to have steadily increased
since March end.

CLSA lifted its price target today to a 'Street High' $430,
reiterating their Buy rating.

Susquehanna said large advertisers, margin expansion
led to better EPS. The firm raised their price target to $380,
reiterating their Positive rating.

Analyst reaction: Piper Jaffray

Piper Jaffray said the results were strong and the
company's less conservative guidance for Q3 is a
sign that the overall advertising environment has
improved in China. The firm noted operating
margin improved significantly in Q209 to 38.5%,
vs. 34.4% in Q208 and 24.5% in Q109. The firm
raised their price target from $340 to $363,
although they maintained their Neutral rating.

Analyst reaction: Goldman Sachs raises PT to $376

Goldman Sachs said Baidu's Q2 results exceeded
their revenue and margin forecasts. Goldman said
they were surprised that TAC climbed to 17% of
revenues, but said BIDU still beat on margins.
The analyst raised his price target on Baidu from
$350 to $376, maintaining the top Conviction Buy
List rating on the shares.

Analyst reaction: Citi raises PT to $385

Business largely back to normal - Baidu's strong
Q2 QoQ growth and Q3 guidance suggest that
the impact of the CCTV expose is largely over, and
the core business is back on track. With Baidu
adding sales headcount, Phoenix Nest set to improve
relevancy and monetization, and ARPU likely
to increase with the improving economy, the outlook
for the next 12 months is bright. While traffic
acquisition costs (TAC) likely will increase further, we
believe Baidu can moderate spend elsewhere (e.g.,
Japan, marketing, etc.) to protect OpM and hence
earnings. We maintain Buy and raise our TP to
US$385 (30x 2010E P/E), from US$260, as we roll
our valuation forward to a 2010 base.

[Citi now has an EPS estimate of $10.28 for 2010]

Analyst reaction: RBC Color on qtr (332.64)

RBC notes although BIDU's 3Q09 guidance
(reported last night after the close)
was shy of the highest expectations, firm
notes that 15-18% sequential growth
is still very impressive all things considered.
The high-end of guidance is in-line with firm's
est, and it will move consensus ests higher. If
there was one blemish on the reported qtr, it
is the continued increase in TAC payments
as traffic from the Union continues to outgrow
that of Baidu O&O. Mgmt noted the absence of
the summer Olympics as a factor in the
improvement in sequential growth vs. the prior yr,
though RBC believes the stabilization in the macro
environment is also helping Baidu return to more
normal seasonal growth trends seen in years prior
to 2008. 2Q09 was yet another uneventful qtr
with no thesis-changing data points, and as such
maintains Outperform rating. Tgt rasied to $339
from $331.

Thursday, July 23, 2009

Hosting world forum on August 18th

During the annual Baidu World forum, Yanhong Li will
cover general outlook for the Internet, the CTO, Yinan Li,
search technology, and COO Peng Ye, using the search
platform to improve marketing by businesses. The dynamic
search database update, Aladdin, will be showcased.
Five categories of topics will be covered: trends in search
technology, e-commerce, search marketing, wireless
internet, and Internet investment.

Wednesday, July 22, 2009

Tuesday, July 21, 2009

New ad management product

Baidu Ad Guan Jia is a free online ad campaign
management system, which helps advertisers
place and manage ads, and evaluate their
performance based on traffic statistics. The
system supports various ad formats including
fixed-place ads, pop-ups, and floating ads. It
enables advertisers to target ad placements
based on regions, dates, browsers, domains,
screen resolutions, etc. Its billing functions
support mainstream options including
day-based, page view-based, and click-based
billings. Currently Baidu Ad Guan Jia is in
closed beta testing.

Analyst action: RBC, CS and GS

RBC reiterates outperform, raising PT to $335.
CS downgrades to underperform from neutral,
raising PT to $250 from $200. Cites slower
switchover to Phoenix Nest, and the chance of
more competition from vertical search engines
(presumably Taobao) as the main drawbacks.
Increases 2009 estimate 3% and 2010 estimate
2%. GS reiterates conviction buy.

Wednesday, July 15, 2009

Baidu space touches the 100 million registered users mark

Baidu's social networking and blogging site, Baidu
space, had 100 million registered users and two
million concurrent users by its third anniversary,
as per a Sina report. Baidu space is simple,
dependable, and associated with the positive Baidu

China Telecom Beijing registering on Bai Fu Bao

China Telecom Beijing is selling 3G
wireless products such as mobile
phones, netbooks, recharging cards,
wireless broadband service, and
voice service packets, on Baidu's
e-commerce site, The
products are for China Telecom's
users in Beijing, as of now.

New website analytic tool

Baidu will soon release a platform codenamed,
somewhat tackily, "Sherlock Holmes". The
service will provide detailed usage
statistics for websites, including IP
addresses, traffic sources, and time on

IM and e-commerce sites linked

Baidu Hi is now linked to the payment tool
Bai Fu Bao and e-commerce site
Links to sent through the IM
service, Baidu Hi, now also show
product names and maps. The e-commerce
and IM sites are going to be further
integrated in the future.

Monday, July 13, 2009

Suning tie-up

Baidu will provide search-focused solutions for Suning's
B2C site. Suning is a large home appliance and electronics
retail chain in China, with around 85 billion RMB in sales
last year.

Thursday, July 9, 2009

Statistics service in for major upgrade

Baidu is closing its statistics service on July 28, 2009, and
moving to the beta version of new software. The software
will be fully supported by mid-August. It has been in
development for about a year, and will provide better
online ad and website statistics services. The data from
the beta test period will not be maintained once the
service is operational, and users are required to back
them up on their own.

Wednesday, July 8, 2009

PostBar acquiring PerfectWorld game

Baidu's online channel forum, Post bar, is
partnering with Perfect World to come up with
a Baidu version of the 3d game 'hot dance party'.
Users can win upto RMB 1000 worth of game
items by participating in various activities
on the site.
The website with the Baidu version
of the game,, has been
up from June 26th.

Tuesday, July 7, 2009

Interested in the Taiwan market: COO Ye Peng

Yanhong Li had been to Taiwan last year, on what
was considered an exploratory tour. He has already
stated Baidu is interested in the Taiwanese search
market, currently dominated by Yahoo via the Kimo

Saturday, July 4, 2009

Deutsche Bank ups price target to $374 from $241

The new price target is based on 1.0 PEG, 38 times
2010 estimated PE and 38% CAGR (09-12).

The firm said recent discussions with management
leads them to believe that 2Q rev growth is
above/in-line with 33-37% guidance, despite recent
labor issues. The firm also commented Baidu is well
positioned to capture secular growth as its initiatives
to improve service quality (Aladdin) and
monetization (Phoenix Nest) received positive initial
feedback. They expect Baidu to capitalize on continuous
improvement of China's Internet fundamentals given
its mkt leadership, product quality and brand equity.

DB's price target is the 2nd highest on the Street, below
Pacific Crest's $410.

Wednesday, July 1, 2009

New revenue-sharing model

TAC at 30% to 45% depending on traffic,
cooperation model, and duration. That means
companies which tie up with Baidu by using
Baidu's tools on their website, driving traffic
to ad sites, would receive
that much percentage of ad revenues. The
level of cooperation can be "exclusive",
"privileged" and "preferred".

In addition Baidu has teamed up with China
Mobile on their music portal "12530".

Compiling China's largest digital rural encyclopedia

Baidu's keyword promotion project had the word
"agriculture" contributing the most to revenue
growth. The company is proceeding to build a
rural-knowledge base, presumably on farming
related items and issues.