HK Stock Market Move | BIDU-SW(09888) rose more than 4% during trading with the continuous advancement of AI transformation. Subsequent company valuation is expected to welcome multiple catalysts.

BIDU-SW(09888) rose more than 4% during the day, and as of the time of writing, it had risen by 3.43% to 81.35 Hong Kong dollars, with a turnover of 275 million Hong Kong dollars. In terms of news, Huatai recently pointed out that the company is still actively exploring the optimization of user experience and commercialization rhythm under the empowerment of AI. The bank believes that this is the key to reshaping its long-term mental positioning in the Chinese internet ecosystem. The positive catalysts for the company's valuation in the future will come from: 1) further achievements in AI transformation of search advertising, with the gradual improvement of user experience leading to a recovery in commercialization rhythm and driving the growth rate of advertising revenue; 2) the continued rapid release of domestic AI cloud-related demand, driving the continued strong growth of Baidu AI cloud revenue; 3) the expansion of the Luobu Kuai Pao business faster than expected; 4) the increase in shareholder return measures exceeding expectations. Maintains a "buy" rating. Baidu officially released its AI report card on December 26th last year, showcasing its achievements in AI until 2024, including information on large-scale model technology research and development, AI application development, and industrial landing. Data shows that as of early November, the daily average call volume of Baidu's Wenxin large model has exceeded 1.5 billion times, compared to the first disclosure of 50 million times a year ago, an increase of 30 times. In addition, Baidu will launch a new version of the Wenxin large model in 2025.