Core Viewpoint - HSBC Global Research reports that while Baidu's intelligent cloud growth is accelerating, the shift in revenue composition is expected to drag down profit margins, leading to a target price reduction of 8.7% from HKD 89.7 to HKD 81.9 [1] Group 1: Financial Adjustments - HSBC has lowered Baidu's adjusted net income forecast for 2025-2027 by 4-10% due to conservative assumptions regarding high-margin advertising growth [1] - The core advertising revenue forecast for 2025-2027 has been reduced by 1-6% as a result of these adjustments [1] Group 2: Future Outlook - The outlook for Baidu's intelligent cloud is more constructive, resulting in minimal changes to overall revenue for 2026-2027 [1] - Baidu's losses in intelligent driving are expected to narrow quickly this year, with a forecasted rapid increase in ride-hailing service orders in the coming quarters [1] Group 3: Investment Rating - Despite the adjustments, HSBC maintains a hold rating on Baidu, citing the long-term growth potential of AI monetization and autonomous driving [1]