Tuesday, July 25, 2006

Baidu To Report Huge Quarter

Previously, we have speculated on Baidu Q4, 2005 here and Q1-2006 here. They turned out to be very close to Baidu's earning reports.

We also speculated about this quarter with financial analysis here. For this quarter, 23.5 million in revenue and $.22 per share earnings were predicted.

Based on what we have seen lately, we boldly predicted that the revenue will coming in around 24 to 25 million and earnings per share of $.24-25.

Even more, we believe Baidu will predicted next quarter's revenue will come in around 30 to 32 million.

There are several developments were significant.

Baidu and IBM join hands in desktop search.

Baidu Collaborate with Sony-Ericsson on mobile search.

Baidu Teams Up With SMG To Develop IPTV Contents.

Baidu will be default search for HP computers sold in China.

Hi.Baidu service announced in Baidu World Conference.

On the business side, Baidu's search advertising continues to gain market share.

At the end of May, we started to take weekly surveys of keyword pricing on Baidu's search ranking service. By the 7th week, we have seen average prices on our Huatong 140 Index jumped 10% from the initial value taken at May 29. Though the index is not a scientifically collected and influenced by the hot contests on many keywords we indexed, the uptrend is strong and clear.

For example, if you compare pricings of a few keywords between Baidu and Sohu, you will be shocked to see the 10-100 fold differences with Baidu on the higher side. Some keywords cost $3-4 US dollars on Baidu can be bought for pennies on Sohu.

We have heavily invested in Baidu and believe it is still one of the scarce fast growers out there in today's economic environment.

Wednesday, July 19, 2006

Baidu Becomes Default Search For HP Computers

July 20

Yesterday, Baidu and HP jointly announced that both sides have reached agreement for strategic collaborations.

From October 1, this year, all HP PCs sold in China will pre-install Baidu search.

According to Baidu's CTO Liu Jianguo, users of the new HP PCs will have Baidu as default search engine of IE browser. There is also a one-key access to Baidu search on the HP keyboard.

source: sohu

China's Internet User Base Continue To Expand, New CNNIC Reports

Xinhua News, July 19 Beijing

China Internet Network Information Center released "The 18th China internet development survey" on July 19. By the end of June, total internet users in China has reached 123 million, an increase of 19.4% over last year. Among them, there are 77 million users access internet via broadband connections.

Data showes the number of users has increased by 12 million in the first half of 2006, a speed up from last year's latter half which saw an increase of about 8 million. The increase in broadband access is even faster. There is an increase of 24 million broadband users with a growth rate of 45.3%.

Source: Feng Xiaofang

Tuesday, July 18, 2006

Huatong 140 Keyword Pricing Index Update(6)

Due to large time requirement for the keyword pricing survey, the Huatong 140 will be done every two weeks in the future.

Huatong 140 weekday survey:

Initial : 4.5581
Week 1: 4.6724
Week 2: 4.7189
Week 3: 4.7194
Week 4: 4.8340
Week 5: 4.8953
Week 7: 4.9961

China's E-commerce Will Break One Trillion Mark

Xinhua News July 18 Beijing

China's famed research institute CCIDNet revealed that, last year, China's e-commerce surpassed 700 billion yuan last year. This year, it is predicted to break the one trillion yuan mark. (roughly 8 yuan = 1 US dollar at present time).

According to the report which published in 2006 Chinese E-Commerce Summit, China's e-commerce revenue has kept a 50-60% annual growth rate in the last two years. It also predicted the fast paced growth will continue for the next few years.

China's internet users reached 110 million. Broadband coverage passed 44.5%. There are 40 million computers connected with broadband.

"The data indicates China has acquired the foundamental web infrastructures and also maturing e-commerce infrastructures." said associate general manager of CCIDnet's e-commerce division.

Source: Chinese jfdaily.com

Thursday, July 13, 2006

Baidu Fills Baidu World With Space And Advertises

July 13

In the opening day of Baidu World, Baidu announced major new products and services such as Baidu Kongjian(means space) named hi.baidu and targeted advertising.

Baidu World conference targets Baidu's search marketing customers as well as partners. Hi.baidu is similar to MSN Space. Baidu intends to take market shares from MSN Spaces due the latter's slow speed and instable service.

According to Baidu official information, Baidu Accurate Marketing is a targeted advertising service based on analysis of internet users' behaviors. It connects advertisers with their intended audiences with accurate targeting. Currently, Baidu obtains over 90% revenue from auctioned search ranking services. Baidu hopes to use the targeted marketing service to enrich it's product line. However, internet users could be offended by the service, thinking their privacy may be at risk. Google has attracted plenty of criticism of privacy invasion outside China.

It is also worthy to mention that, Baidu has just cut it's enterprise software division and layed off most of divisional employees.

Yesterday, Baidu also announced alliances with Shanghai Media Group, Tianjin Netcom, Shanghai Bell/Alcatel, as well as a few other companies.

source: Dayou.com

Tuesday, July 04, 2006

Baidu Moves Up Earnings Report, Delays Lock-up Release

Baidu to Report Second Quarter Financial Results on July 26, 2006

BEIJING, July 4 /Xinhua-PRNewswire/ -- Baidu.com, Inc. (Nasdaq: BIDU), the leading Chinese language Internet search provider, today announced that it will report its financial results for the quarter ended June 30, 2006, after the U.S. market closes on July 26, 2006. Baidu's management will hold an earnings conference call at 9 PM on July 26, 2006 U.S. Eastern Daylight Time (9 AM on July 27, 2006 Beijing/Hong Kong time).

Due to the timing of the earnings release, the original lock-up restrictions on certain shareholders of Baidu will be extended for an additional 18 days from the date of the earnings release pursuant to the terms of the lock-up letters executed by these shareholders. As a result, all of the shares held by Baidu's pre-IPO shareholders will be released from the contractual lock-up restrictions on August 13, 2006.

From Baidu

Keyword Pricing Updates(5)

Huatong 150 weekend survey:

Initial: 3.6914
Week1: 3.7097
Week2: 3.7654
Week3: 3.7578
Week4: 3.8520
Week5: 3.8981

Huatong 140 weekday survey:

Initial : 4.5581
Week 1: 4.6724
Week 2: 4.7189
Week 3: 4.7194
Week 4: 4.8340
Week 5: 4.8953

Monday, July 03, 2006

Baidu World to open on July 13

Beijing, July 3

The world's leading Chinese search service provider, Baidu announced that, " 2006 Baidu World" will be held in Beijing on July 13. It will be Baidu's first largest scale and highest level conference focused on the many users and customers as well partners. Baidu will use the oppertunity to showcase all the innovative technologies, products, services and business models to to further build strategic relationships with Baidu's value chains.

2006 Baidu World will have a central theme of "The world starts from you". Many forums and communications will be centered the web search topics. The conference will explain why web search is the major way of obtaining information from multiple angels. It will demonstrate the tremendous value of web search from information involving daily life, entertainment as well as commercial oppertunities. Many spot lights of the conference have alread attracted attentions industrywide.

Spot light 1: Showcase how search has changed people's lives

Spot light 2: Highest level of search tech forums

Spot light 3: Most innovative search marketing business

Spot light 4: Most expected webmaster forum

Spotlight 5: The largest web alliance

Spotlight 6: The most influential industry collaborations

Source: Baidu