Country Select Securities: Baidu Group-SW (09888) target price raised to HK$172, revised rating to "Buy"

According to the Zhixin Finance APP, Guosheng Securities released a research report stating that based on the impact of AI on Baidu Group's traditional search business, it brings more computing power, cloud services, and application demand, adjusting the company's revenue for 2025-2027 to 129.9/139.1/157.4 billion yuan; non-GAAP net profit attributable to the mother is 17.9/20.1/27.3 billion yuan. Based on Baidu's advertising 2026e P/E of 7x, Baidu Cloud's 2026e P/S of 4x, Kunlun Chip's 2026e P/S of 10x, Luobo KuaiPao's 2026e P/S of 10x, as well as other business and valuation of associated companies, the bank gives the company a target price of HKD 172/USD 177, upgraded to a "buy" rating.