Chinese internet giant Baidu jumped as much as 15% today after reports claimed that the company recently held talks with the Chinese government on its plans to launch electric cars. The company is reportedly considering contract manufacturing or starting a venture in partnership with a local car giant.
The company has reportedly held talks with companies like Zhejiang Geely (OTCPK:GELYF), Guangzhou Automobile Group (OTCPK:GNZUF) and China FAW's Hongqi.
Baidu has a strong foothold in internet services, apps and search. Entering the autonomous cars market presents a huge opportunity. According to a report, the global EV market had a worth of over $115 billion as of 2019, with estimates predicting it to grow by fivefold by 2026.
For this year the company, based inBeijing revenue will be around 107,09 billion SEK. This is according to the average of the analysts' estimates. This is slightly lower than 2019's revenue of 107,41 billion SEK.
The analysts expect for 2020 a net profit of 21,05 billion SEK. The majority of the analysts expects for this year a profit per share of 60,67 SEK. Based on this the price/earnings-ratio is 3,14.
Analysts don't expect the company to pay a dividend. The average dividend yield of the internet companies is a limited 0,32 percent.
The Baidu stock was the past 12 months quite volatile. Since last December the stock is even 50 percent higher. This year the stock price moved between 82 and 201 yuan.
Click here for dividend Baidu. On Wednesday the stock closed at 190,4 SEK.
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