Ge Long Hui·2025-09-22 08:40Group 1 - Baidu's stock in Hong Kong rose over 3%, leading to a pre-market increase of over 3% for its US shares [1] - Haitong International upgraded Baidu's valuation method from Price-to-Earnings (PE) to Sum-of-the-Parts (SoTP) due to the new CFO's strategy to "unlock hidden assets" [1] - Baidu is reshaping its traditional business in the wake of the large language model (LLM) trend and aims to surpass competitors in the cloud market through various measures [1] Group 2 - Specific measures include adjusting traditional search operations, enriching AI SaaS products, providing cost-effective and reliable cloud infrastructure, and building an open foundational model ecosystem [1] - The valuation adjustment considers a 45% discount, resulting in a total market value of $64 billion, or a target price of $188 per ADR, corresponding to a projected 22x PE for fiscal year 2025 [1]