BIDU(HK:09888) Shen Zhen Shang Bao·2026-01-02 04:21Core Viewpoint - Baidu's subsidiary Kunlun Core has submitted a listing application to the Hong Kong Stock Exchange, which has positively impacted Baidu's stock price, reflecting investor optimism about the potential value of Kunlun Core's independent listing [1][2]. Group 1: Listing Details - Kunlun Core submitted its listing application on January 1, with plans for a global offering that includes public offerings in Hong Kong and placements to institutional investors [1][5]. - After the proposed spin-off, Kunlun Core is expected to remain a subsidiary of Baidu, allowing for continued strategic alignment [5]. Group 2: Strategic Benefits - The spin-off is believed to enhance the operational and financial transparency of Kunlun Core, enabling investors to better assess its performance and potential [8]. - The business of Kunlun Core is expected to attract investors focused on AI computing chips and related hardware and software systems [8]. - The listing is anticipated to improve Kunlun Core's image among clients, suppliers, and potential strategic partners, thereby enhancing its negotiating position and business opportunities [8]. Group 3: Financial Insights - Kunlun Core is valued at approximately 21 billion RMB (about 2.97 billion USD) following its latest funding round, with Baidu holding a 59.45% stake [9]. - Analysts predict that Kunlun Core's revenue will surge from approximately 1.3 billion RMB in 2025 to 8.3 billion RMB in 2026, representing a sixfold increase [10]. - If successful, the listing could significantly enhance Baidu's long-term investment value, potentially leading to a market re-evaluation of Baidu's overall valuation [10].