Guoxin Securities·2025-09-18 13:43Investment Rating - The investment rating for Baidu Group is "Outperform the Market" (maintained) [1] Core Insights - Baidu's value is being reassessed in the context of the AI wave, with self-developed chips (Kunlun), AI infrastructure services, and AI application scenarios contributing to its growth. The Kunlun chip's technological strength is becoming evident, AI cloud revenue is rapidly increasing, and the autonomous driving business is expanding internationally due to cost advantages. The monetization potential of applications like Baidu Wenku and Baidu Cloud is significant, and the AI advertising monetization model is gradually being implemented [2]. Summary by Sections Company Overview - Baidu's core advertising business accounts for approximately 50% of revenue, while AI-related businesses (AI cloud, autonomous driving) contribute about 30%. iQIYI accounts for around 20% of revenue. The traditional advertising business is under pressure, while AI businesses are on the rise [2][9]. Kunlun Chip Progress - The demand for domestic AI chips is expected to surge, with projected revenues of approximately 5 billion RMB in 2025 and 10 billion RMB in 2026 for Kunlun chips, of which Baidu holds a 59% stake. The Kunlun P800 chip has a FP16 computing power of 345 TFLOPS, surpassing the A800, and supports large-scale deployments [2][23]. Baidu AI Cloud Progress - In Q2 2025, AI cloud revenue reached 6.5 billion RMB, a year-on-year increase of 27%. The total revenue for 2025 is expected to reach 27.4 billion RMB, with a growth rate of 26%. By 2026, revenue could reach 35 billion RMB, with continued profit improvement [2][30]. Autonomous Driving - Apollo Go - The total order volume for Apollo Go is expected to exceed 10 million in 2025. In Q2 2025, Apollo Go provided over 2.2 million rides, a 148% year-on-year increase, with a cumulative service of over 14 million rides. The business model is profitable in cities like Wuhan, although short-term profit contributions are limited [2]. AI Advertising and Digital Agent Business - By July, AI-generated content accounted for 64% of mobile search results, covering 90% of Baidu App's monthly active users. In Q2 2025, AI-generated advertising revenue increased by 50% quarter-on-quarter, contributing 13% to core online marketing revenue [2]. Financial Forecast - Revenue projections for Baidu have been adjusted upwards for 2025-2027, with expected revenues of 133.6 billion RMB, 143.7 billion RMB, and 154.1 billion RMB respectively. Adjusted net profit estimates for the same period are 21 billion RMB, 24.4 billion RMB, and 28 billion RMB [2].