Zhi Tong Cai Jing·2025-10-17 07:43Core Viewpoint - Guohai Securities initiates coverage on Baidu Group-SW (09888) with a "Buy" rating, forecasting revenue growth and strong non-IFRS net profit from 2025 to 2027, driven by the company's unique AI capabilities and cloud services [1][2] Group 1: Financial Projections - Expected revenues for Baidu from 2025 to 2027 are projected at 130.973 billion, 135.668 billion, and 144.307 billion yuan respectively [1] - Non-IFRS net profits are forecasted to be 16.600 billion, 19.864 billion, and 23.548 billion yuan for the same period [1] - Corresponding non-IFRS EPS estimates are 6.04, 7.22, and 8.56 yuan [1] Group 2: AI Capabilities and Cloud Services - Baidu is one of the few companies globally providing a full-stack AI solution, which offers a differentiated technological foundation for all its business operations [1] - The company is enhancing its AI capabilities in search, with AI-generated results increasingly dominating mobile search result pages, leading to higher user engagement and satisfaction [1] - Baidu's end-to-end AI cloud products are cost-effective and scalable, facilitating the adoption of AI technologies in businesses [2] Group 3: Robotaxi Leadership - Baidu is a global leader in the Robotaxi market, having achieved breakeven in the left-hand drive market and fully autonomous operations in mainland China [2] - The company is expanding its testing in right-hand drive markets, showcasing the adaptability of its technology and operational expertise across different regions and regulatory environments [2]