Zhi Tong Cai Jing·2025-08-21 01:54Group 1 - The core viewpoint is that CICC maintains an "outperform" rating for Baidu Group-SW (09888) and sets target prices of $99.1 for US stocks and HK$96 for Hong Kong stocks, based on SOTP valuation method, indicating an upside potential of 11% and 10% respectively for US and HK stocks [1] Group 2 - AI transformation in search is deepening, with commercialization still in the early exploration phase; new advertising products have generated a 50% quarter-on-quarter revenue increase, accounting for over 13% of Baidu's core advertising revenue [2] - The usage of virtual human anchors has increased in sectors such as healthcare, law, education, and automotive, contributing to a 55% quarter-on-quarter revenue increase, representing over 3% of Baidu's core advertising revenue [2] Group 3 - Cloud revenue shows strong growth, with AI cloud revenue increasing by 27% year-on-year to 6.5 billion yuan; adjusted operating profit remains stable, with enterprise cloud growth outpacing the market and subscription services being a major contributor [3] - GPU cloud revenue has increased by over 50% [3] Group 4 - The "LuoBo Kuaipao" service accelerated global expansion, with a 148% year-on-year increase in orders to 2.2 million in Q2, driven by successful commercialization of domestic operations [4] - As of June, the autonomous driving service has expanded to 16 cities globally, with ongoing road testing in Hong Kong and recent launches in the UAE and Abu Dhabi [4] - Strategic partnerships with international ride-hailing platforms Uber and Lyft aim to deploy thousands of autonomous vehicles in key markets across Asia, the Middle East, and Europe [4]