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Baidu, Full Truck & XPeng Q1 Earnings Results Reviewed

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Q1 Earnings Reports

Baidu

Search giant Baidu (9888 HK, BIDU), which has AI ambitions, released its Q1 financial results after the Hong Kong close today.

  • Revenue increased by +3% to RMB 32.45B ($4.47B) from RMB 31.50B and versus expectations of RMB 31.00B.
  • Baidu Core (Search) revenue increased by +7% to RMB 25.46B ($3.51) from RMB 23.80B.
  • Adjusted Net Income fell by -8% to RMB 6.47B ($891mm) from RMB 7.01B and versus expectations of RMB 5.04B.
  • Adjusted EPS fell by -7% to RMB 18.54 ($2.55) from RMB 19.19 and versus expectations of RMB 14.97.

Full Truck Alliance

Full Truck Alliance (YMM US), a digital freight platform/Uber for truck drivers, reported Q1 results after the Hong Kong close. I hope management speaks to a Hong Kong secondary listing to mitigate a policy error surrounding US-listed China ADRs.

  • Revenue increased by +19% to RMB 2.70B ($372.10mm) from RMB 2.27B and versus expectations of RMB 2.66B.
  • Adjusted Net Income increased by 85% to RMB 1.39B ($191.70mm) from RMB 756mm and versus expectations of RMB 1.27B.
  • Adjusted EPS increased to RMB 1.32 ($0.18) from RMB 0.72 and versus expectations of RMB 1.23.
  • Full Truck's forecast for total net revenues is expected to be between RMB 3.06 billion and RMB 3.12 billion for the second quarter of 2025, representing a year-over-year growth rate of approximately 10.6% to 12.9%.

Xpeng

Electric Vehicle maker XPeng (9868 HK, XPEV US) released Q1 financial results after the Hong Kong close today.

  • Total revenues increased by +141.5% to RMB 15.81 billion (US$2.18 billion) from RMB 6.55 billion.
  • Adjusted Net Income Loss declined to RMB 0.43 billion (US$0.06 billion) from RMB 1.41 billion. 
  • Adjusted EPS Loss declined to RMB -0.72 (-$0.10) from RMB -0.70 and versus expectations of RMB -0.99.
  • Q2 Forecast: Deliveries of vehicles to be between 102,000 and 108,000, representing a year-over-year increase of approximately 237.7% to 257.5%. Total revenues to be between RMB 17.5 billion and RMB 18.7 billion, representing a year-over-year increase of approximately 115.7% to 130.5%.

Key News

Asian equities were broadly higher overnight, led by gains in Taiwan, while Japan and Thailand underperformed as a CNN report on an Israeli strike against Iran’s nuclear facilities drew global attention.

Energy stocks rose in response to the news, alongside gains in precious metals and coal in both Hong Kong and Mainland China. Value stocks in Mainland China outperformed growth stocks, while Hong Kong growth stocks rebounded, seemingly dismissing concerns raised by yesterday’s Financial Times article, “Top US state Republicans urge SEC to consider delisting Chinese companies.”

The Financial Times article referenced a letter from twenty-one US state Republican financial officers, which contained several inaccuracies and misstatements. Notably, the Financial Times did acknowledge that Chinese companies had received a clean bill of health from both the US Securities and Exchange Commission (SEC) and the Public Company Accounting Oversight Board (PCAOB). In meetings with several global financial institutions in Hong Kong, local sentiment was clear: the few remaining US-listed Chinese companies without a Hong Kong listing are expected to relist in the city. The timing of the letter coincided with Contemporary Amperex Technology Co. Limited’s (CATL) Hong Kong initial public offering—the world’s largest so far this year—which, in previous years, would likely have taken place in New York. As a result, Hong Kong Exchanges & Clearing Limited (HKeX) rose 3.27%.

CATL shares advanced another 10.19% in Hong Kong, with BYD Company Limited up 4.05%, Li Auto Inc. up 4.05%, and Geely Automobile Holdings Limited up 3.09%. Internet stocks also performed well, as Alibaba Group Holding Limited gained 1.15% after announcing a partnership with Meitu Inc., a provider of photo-editing and beautification applications with strong connections in the cosmetics industry. Meitu’s shares surged 18.98% on the news. The healthcare sector maintained positive momentum in both markets following yesterday’s licensing agreement between 3SBio Inc. and Pfizer Inc.

Mainland investors purchased $182 million of Hong Kong-listed stocks via the Southbound Stock Connect. In policy news, eight Chinese government agencies, including the People’s Bank of China (PBOC), announced “Several Measures to Support the Financing of Small and Micro Enterprises.” Small businesses account for the majority of employment in Mainland China, and these measures are intended to ease access to loans and reduce financing costs.

A Mainland media source reported the completion of the third version of the China-ASEAN Free Trade Zone agreement, though details remain limited. Despite yesterday’s Loan Prime Rate (LPR) cut, Mainland China equities did not see stronger gains, highlighting that restoring consumer confidence will take time. On a positive note, April tax revenue increased for the first time this year, signaling a tentative economic rebound.

The 618 E-Commerce event, initiated by JD.com and now adopted by other platforms, is starting earlier than usual this year. While the event may boost top-line revenue growth, the associated discounts could weigh on margins and net income. Earnings per share (EPS) should benefit from continued share buybacks.

Last Night's Performance

Country / IndexTicker1-Day Change
China (Hong Kong)HSI Index0.6%
Hang Seng TechHSTECH Index0.5%
Hong Kong TurnoverHKTurn Index5.1%
Hong Kong Short Sale TurnoverHKSST Index25.9%
Short Turnover as a % of Hong Kong TurnoverN/A17.7%
Southbound Stock Connect Net Buy/Sell (US $ Millions)N/A-171.4
China (Shanghai)SHCOMP Index0.2%
China (Shenzhen)SZCOMP Index0%
China (STAR Board)Star50 Index-0.2%
Mainland Turnover.chturn Index0.4%
Nouthbound Stock Connect Net Buy/Sell (US $ Millions)N/ANot Available
Jing Daily China Global Luxury IndexCHINALUX Index0.1%
JapanNKY Index-0.6%
IndiaSENSEX Index0.5%
IndonesiaJCI Index0.7%
MalaysiaFBMKLCI Index-0.3%
PakistanKSE100 Index0.9%
PhilippinesPCOMP Index0.6%
South KoreaKOSPI Index0.9%
TaiwanTWSE Index1.3%
ThailandSET Index-0.8%
SingaporeSTI Index0%
AustraliaAS51 Index0.5%
VietnamVNINDEX Index0.6%
IndicatorHong KongMainland China
Today's Volume % of 1-Year Average11794
Advancing Stocks3091510
Declining Stocks1623422
Outperforming FactorsDividend Yield, Momentum, BuybackValue, Dividend Yield, Low Volatility
Underperforming FactorsLow Volatility, Large Caps, LiquidityMomentum, Quality, Liquidity
Top SectorsMaterials, Healthcare, EnergyEnergy, Industrials, Materials
Bottom SectorsStaples, Tech, IndustrialsTech, Communication, Real Estate
Top SubsectorsElectrical Equipment, Non Ferrous Metals, Textiles/ApparelPrecious Metals, Coal, Auto
Bottom SubsectorsHousehold Personal Products, Food/Beverage/Tobacco, Paper/PackagingChemical Fiber, Leisure Products, Internet
Southbound Connect BuysCNOOC, Meituan (Moderate), 3SBIO (Small)
Southbound Connect SellsTencent (Large), Alibaba, Xiaomi (Moderate), Meitu, Pop Mart (Small)
MSCI China All Shares Index# of StocksAverage 1-Day Change (%)
Hong Kong Listed1510.84
Communication Services90.56
Consumer Discretionary281.39
Consumer Staples13-0.92
Energy71.49
Financials230.38
Health Care132.39
Industrials20-0.18
Information Technology10-0.25
Materials105.16
Real Estate60.62
Utilities120.69
Mainland China Listed4040.68
Communication Services6-0.27
Consumer Discretionary310.87
Consumer Staples240.22
Energy132.16
Financials640.5
Health Care310.99
Industrials641.5
Information Technology91-0.4
Materials581.78
Real Estate6-0.27
Utilities160.38
US & Hong Kong Dually ListedTicker1-Day Change (%)
Tencent HK700 HK Equity0.7
Alibaba HK9988 HK Equity1.2
JD.com HK9618 HK Equity0.7
NetEase HK9999 HK Equity0.8
Yum China HK9987 HK Equity-1.4
Baozun HK9991 HK Equity-1.1
Baidu HK9888 HK Equity-1.9
Autohome HK2518 HK Equity-2.4
Bilibili HK9626 HK Equity4.1
Trip.com HK9961 HK Equity-1.1
EDU HK9901 HK Equity-0.4
Xpeng HK9868 HK Equity0
Weibo HK9898 HK Equity1.6
Li Auto HK2015 HK Equity4.1
Nio Auto HK9866 HK Equity0.7
Zhihu HK2390 HK Equity-1.9
KE HK2423 HK Equity-1.3
Tencent Music Entertainment HK1698 HK Equity1.2
Meituan HK3690 HK Equity0.7
Hong Kong's Most Heavily Traded by Value 1-Day Change (%)
XIAOMI CORP-CLASS B-0.6
TENCENT HOLDINGS LTD0.7
CONTEMPORARY AMPEREX TECHN-H10.2
BYD CO LTD-H4
ALIBABA GROUP HOLDING LTD1.2
HONG KONG EXCHANGES & CLEAR3.3
MEITUAN-CLASS B0.7
MEITU INC19
POP MART INTERNATIONAL GROUP3.7
CHINA CONSTRUCTION BANK-H0.6
Shanghai and Shenzhen's Most Heavily Traded by Value 1-Day Change (%)
CONTEMPORARY AMPEREX TECHN-A4.2
BYD CO LTD -A1.3
ANHUI JIANGHUAI AUTO GROUP-A8.6
ZIJIN MINING GROUP CO LTD-A5.9
OFILM GROUP CO LTD-A-3.7
SERES GROUP CO L-A2.3
HONGBAOLI GROUP CORP LTD-A10
MONTNETS CLOUD TECHNOLOGY-A1.6
EAST MONEY INFORMATION CO-A-0.7
GUIZHOU ZHONGYIDA CO LTD-A-5.1

Last Night's Exchange Rates, Prices, & Yields

  • CNY per USD 7.20 versus 7.21 yesterday
  • CNY per EUR 8.16 versus 8.12 yesterday
  • Yield on 10-Year Government Bond 1.71% versus 1.70% yesterday
  • Yield on 10-Year China Development Bank Bond 1.71% versus 1.70% yesterday
  • Copper Price +0.30%
  • Steel Price -0.03%