news flash·2025-06-05 02:29Group 1 - The core viewpoint of the report is that Baidu's search advertising revenue is expected to remain under pressure due to AI impacts, with a projected year-on-year decline of 9% to 66 billion RMB for the entire year [1] - The report anticipates a year-on-year decline of 11% and 12% in search advertising revenue for the second and third quarters, respectively, with a slight easing in the decline expected in the fourth quarter [1] - Baidu's operating profit margin for its core business is projected to drop to 14.8% in the second quarter, with an overall annual operating profit margin forecasted to decrease by 1.4 percentage points to 17.8% [1] Group 2 - The report maintains a target price of 96 HKD for Baidu Group based on SOTP valuation [1] - The company is seen as leading in cloud and autonomous driving sectors, which may provide opportunities to reverse the group's valuation [1] - The report suggests monitoring the sustainability of cloud revenue growth and the global promotion of Robotaxi [1]