Ge Long Hui·2026-01-08 21:53Company Developments - Baidu's autonomous driving platform, Apollo Go, has officially received a fully autonomous driving test license from the Dubai Roads and Transport Authority (RTA) as of January 6, 2026, making it the first and only platform authorized for full autonomous testing in Dubai [1] - The company plans to expand the Apollo Go fleet in Dubai to over 1,000 vehicles [1] - Apollo Go has successfully established a fully autonomous vehicle integrated operation base in the Middle East and has covered 22 cities globally, providing over 17 million services with more than 250,000 fully autonomous orders per week [1] Financial Insights - As of Q3 2025, the company estimates its quickly monetizable net cash portion to be 180.1 billion yuan, indicating a strong cash reserve and safety net [2] - AI-related business revenue reached 9.6 billion yuan in Q3 2025, showing a year-on-year growth of over 50% [2] - The company maintains its revenue and non-GAAP net profit forecasts for 2025 and 2026, while introducing new forecasts for 2027, estimating revenue at 135 billion yuan and non-GAAP net profit at 22.1 billion yuan [2] Valuation and Target Price - The company has adjusted its target prices for US and Hong Kong stocks upward by 8.5% and 7% to $205 and HK$196, respectively, based on a sum-of-the-parts (SOTP) valuation method [2] - The new target prices correspond to a non-GAAP P/E ratio of 25 times for US stocks and 21 times for Hong Kong stocks for the years 2026 and 2027, indicating an upside potential of 40% and 35% compared to current valuations [2]