China's leading search engine Baidu online

Netease technology - February 1 news, Morgan and the research report released today Tampa, maintain the baidu stock "hold" rating, for $108.63 target price. Report says, baidu in 2010 "strong", the future growth of baidu expectations remain high. However,mbt shoes uk because good performance in 2010, plus baidu paid search business face the competition increased, analysts expect the second half in 2011, will help the growth of baidu slowdown.
The following report part the:
Benefit from business leverage effect, China's leading search engine Baidu online network technology company (Baidu Inc., j com BIDU) fourth quarter sales in 2010 than the 2009 increase over the same period, 3.71 billion dollars to 94%, Morgan Stanley (than the expected high before Richard Stanley 2%; This quarter of diluted earnings per share of baidu than the 2009 increase over the same period, 1.7 times to $0.50 than Morgan Stanley expected high 9%.
In the fourth quarter of 2010 than pay the number of baidu consumers increased 24% MBT Kafala, to the same period in 2009, but this quarter per user per month on average income (ARPU) than the 2009 56 percent increase over the same period. This quarter paid consumers and dilution baidu charge per share the same period in 2009 PE ratio is larger, part of the reason is the growth of the company in the fourth quarter in 2009 to Phoenix Nest Nest) advertising system (Phoenix upgrade, which produced the temporary impact upgrade makes 2009 time ARPU lower in the fourth quarter and and made part of customer churn data, so this quarter didn't have so much growth. Benefit from operating leverage has more advantages and function of the flow of Acquisition cost (agriculture obtained limited), this quarter baidu's operating margins up 56 percent still than the same period in 2009, increased by 17%. In addition, baidu for in the first quarter of 2011, the company expected strong expected in the first quarter of 2011 sales more than in the first quarter of 2010 has jumped 84% to 89%.
Morgan Stanley said: "our worry is: for its innovative projects such as baidu" Box calculation "(Box Computing) investment (such as research and development and capital expenditures) may increase in the near future, and these investment within only as" a cost center still. "we can notice, baidu in Japan and local enterprise cooperation business will the company 2010 earnings per share a 5% reduction. MBT Goti, (note:" Box calculation ", is baidu interviewees, chairman and chief executive of 2009 in baidu technology innovation conference proposed technology concepts.)
Morgan Stanley says: since baidu development is rapid, we to the company still very high expectations of future growth. Based on Discount Cash Flow (DCF model blunt Discount Cash, to baidu evaluation method, we the fair value of $102.8 per share. According to the current price perspective, baidu's share price is we to its 2011 50 times earnings expectations, the data of China near our large Internet services company such as Alibaba (Alibaba), Tencent (Tencent), China in line tourism industry giants ctrip (ctrip) company valuations interval limit.
Due to the success of phoenix nest advertising system and Google launched the "half exit" China market, baidu in 2010 "strong". But since 2010 performance is better, plus baidu paid search business face the competition has increased in 2011, we expect the growth rate will be half baidu slowdown.
In addition, because in the next few quarters, and marketing expenses baidu in r&d and employee effort will increase in the next few quarters, expected in baidu's operating margins will decrease.
We stock rating: to baidu holding.
ModelWare model calculation according to Morgan Stanley, baidu December 2009, actual earnings per share for RMB 4.27 yuan, December 2010 actual earnings per share for RMB 10.04 yuan; Baidu in December 2011 the estimated earnings per share 15.07 yuan RMB, December 2012 for the estimated earnings per share 20.99 yuan RMB. January 31, 2011 108.63 the share price: $baidu. Baidu's market value: RMB 2498.  32 billion yuan.