Baidu (BIDU), HK 9888; 02 (Nov 22 - Dec 26)

[winston]

not vested

Baidu Inc (9888 HK)
HK Listing Of Kunlunxin To Unlock Value Of Baidu AI Cloud

Highlights

We are optimistic on Baidu as the Kunlunxin spin-off could help unlock financial value for Baidu and strengthen its AI ecosystem.

Baidu announced that on 1 Jan 26, Kunlunxin applied for a listing on the HK Stock Exchange.

Following the spin-off, Kunlunxin will remain a consolidated subsidiary, with Baidu retaining a controlling 59% stake.

Maintain BUY with a higher target price of HK$166.00 (US$185.00).

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

not vested

<Research>M Stanley Raises Baidu (BIDU.US) TP to USD150, Foresees Last Qtr Non-GAAP OP to Dip 40.5%

Morgan Stanley released a report estimating that BIDU-SW (09888.HK) will report a core revenue of RMB26.1 billion in 4Q25, representing a YoY shrinkage of 5.6%.

The YoY decline in online ads revenue is expected to narrow from 19% in 3Q25 to 16%, mainly due to the still limited monetization capability of AI-generated content in ads.

The broker stated that the visibility of when the ads business will reach a watershed remains limited.

Morgan Stanley reiterated its Equalweight rating for Baidu (BIDU.US) in the US market, with a target price raised from USD130 to USD150.

The broker forecast that Baidu's non-GAAP OP for the last quarter will reach RMB2.8 billion, down 40.5% YoY.

It expected Baidu's non-GAAP core OP to improve QoQ, and Baidu's OP to further elevate this year.

Potential improvements in shareholder returns (dividends, buyback updates, or expansions) and the value release of its Kunlunxin and autonomous taxi branch Apollo Go remain key focus areas, Morgan Stanley mentioned.

The company is also planning a dual primary listing, potentially to be included in the Southbound Connect (expected to be completed in 2H26).

Source: AASTOCKS Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

not vested

<Research>CLSA Raises Baidu (BIDU.US) TP to USD176, Expects Continued Strong Growth in Robotaxi/ Kunlunxin

CLSA released a research report, covering BIDU-SW (09888.HK), of which core 4Q25 results may have continued to be affected by the transformation of AI search.

Yet, the broker assumed that the YoY decline in total revenue and adjusted EBIT could narrow.

CLSA predicted that Baidu's cloud business revenue growth may slow to about 10% YoY on a high base, but with the broadened application of AI in China, the business was expected to resume growth this year, with an estimated increase of 20%.

Related News: Nomura Elevates Alibaba Group (BABA.US) TP to US$237, Keeps Buy Rating

The broker looked forward that Baidu's Robotaxi and Kunlunxin can maintain strong growth.

It also mentioned that the group's recent large-scale personnel optimization will support profit recovery this year.

CLSA raised Baidu's (BIDU.US) US stock TP from USD160 to USD176, maintaining an Outperform rating.

Source: AASTOCKS Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

not vested

<Foresight>Brokers Expect BIDU-SW's Adj. NP to Dive ~50% Last Qtr; Focus on Kunlunxin Spin-off & Potential Upgrade to HK 'Primary Listing' Status

BIDU-SW (09888.HK) is set to announce its 4Q25 results after the market bell on February 26 (Thursday).

Given the heavier short-term pressure from the AI transformation of its search business on core advertising revenue and ongoing investments in AI, it is expected that BIDU-SW's adjusted operating profit margin will have experienced a significant decline.

According to the forecasts from eight brokers as summarized by our reporters, BIDU-SW's 4Q25 non-GAAP net profit attributable to shareholders is estimated to have dropped by 42.2-56.9% YoY to RMB2.805-3.875 billion from RMB6.709 billion in the same period of 2024. The median of RMB3.382 billion marks a YoY decline of 49.6%.

Investors will focus on whether BIDU-SW's management can trim the decline in advertising revenue QoQ, the latest guidance on the transformation of the search business, the spin-off of Kunlunxin for Hong Kong listing, updates on the Robotaxi business, AI competition, capital expenditure, and whether it will consider upgrading the company's Hong Kong listing status from secondary listing to primary listing or dual primary listing (to qualify for inclusion in Southbound Stock Connect).

Broker│Forecasted 4Q25 non-GAAP Net Profit Attributable to Shareholders (RMB)│YoY Change
BOCI│3.875 billion│-42.2%
Morgan Stanley│3.507 billion│-44.7%
CLSA│3.493 billion│-47.9%
Citi│3.478 billion│-48.2%
CCBI │3.286 billion│-51%
UBS│3.151 billion│-53%
China Renaissance│2.805 billion│-58.2%
Daiwa│2.894 billion│-56.9%

Related NewsRatings & TPs on BIDU-SW (09888.HK) (Table)

Calculated based on BIDU-SW's 4Q24 non-GAAP net profit attributable to shareholders of RMB6.709 billion.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

vested

<Results>BIDU-SW 4Q Non-GAAP Net Income Drops 41.8% to RMB3.907B, Slightly Above Upper End of Forecast

BIDU-SW (09888.HK) announced its 4Q25 results for the period ended 31 December 2025.

Non-GAAP net income amounted to RMB3.907 billion, down 41.8% YoY, ahead of the upper end of the RMB2.805-3.875 billion forecast range of 8 brokers compiled by our reporters.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

vested

China's Baidu revenue falls 4% as AI cloud growth fails to offset ad weakness

Revenue from Baidu's core AI-powered business, which includes its cloud infrastructure unit, AI applications and robotaxi division, jumped ​to ​11 billion yuan ($1.61 billion) in the fourth ​quarter and accounted for 43% of ‌the company's general business revenue.

Reported total revenue of 32.74 billion yuan for the quarter ‌ended December, compared with analysts' average estimate of ​32.62 billion yuan.

Its net income for the ​quarter was 1.8 billion yuan with earnings per share at ‌10.62 yuan, compared with analyst's estimate ​of 9.25 yuan.

Source: Reuters

https://finance.yahoo.com/news/chinas-b ... 41118.html

[winston]

vested

Broker│ Opinion

Nomura│ AI-driven business was robust; chip business IPO plan was on track

Citi│ Quarterly earnings beat expectation; full-year AI-driven business grew 48% YoY

BofA Securities│ Overall quarterly business revenue was in line with expectation, while adjusted operating profit beat forecast

UBS│ Shift to AI-first strategy continued

CLSA│AI cloud infrastructure became new driver

Morgan Stanley│ Quarterly revenue was in line with expectation, while operating cash flow turned positive

Goldman Sachs│ Quarterly results were broadly in line with expectations; AI-driven business showed solid QoQ growth

Source: AAStocks Financial News

Website: www.aastocks.com

[winston]

vested

<Research>UBS Trims BIDU-SW's TP to HKD165; AI Cloud Infra Acting as Key Growth Driver

UBS has issued a research report expecting that BIDU-SW (09888.HK) will report 1Q26 results in line with market expectations.

Revenue growth will be driven by increased contribution from AI-fueled businesses, which are expected to account for more than 50% of core revenue.

Thanks to industry-wide price hikes as a result of surging AI demand and tight computing power supply, BIDU-SW's AI cloud infrastructure revenue is likely to soar by more than 40% in 1Q26.

The company's supply-side advantage in its self-developed chips (Kunlunxin) not only helps secure new customers but also prompts existing clients toward renewals.

Related News: M Stanley Expects Baidu Inc (09888.HK) 1Q26 Core Revenue to Slip 1% YoY; Faster Cloud Growth to Offset Ad Deterioration

UBS lowered its target price for BIDU-SW from HKD175 to HKD165, with a Buy rating.

Source: AASTOCKS Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news