BIDU-SW (09888) surged more than 5% again, accumulating a gain of over 15% for the week. As of the time of writing, the stock was up 5.32%, trading at HK$138.5, with a turnover of HK$684 million. On the news front, Baidu Group announced on the Hong Kong Stock Exchange that on January 1, Kunlun Xin, through its joint sponsors, submitted a confidential listing application form (Form A1) to The Stock Exchange of Hong Kong Limited, applying for the approval of the listing and trading of Kunlun Xin shares on the Main Board of the Hong Kong Stock Exchange. The current plan involves the proposed spin-off being carried out through a global offering of Kunlun Xin shares. Public information shows that Kunlun Xin is Baidu's semiconductor subsidiary focused on AI chip research and development, with its products primarily applied in data centers, cloud computing, and autonomous driving, among other fields. J.P. Morgan predicts that Kunlun Xin's revenue will surge from approximately RMB 1.3 billion in 2025 to RMB 8.3 billion in 2026, representing a six-fold increase. If estimated using the average price-to-sales (P/S) ratio of 10x for tech stocks, its valuation is expected to exceed RMB 80 billion, significantly enhancing the value of Baidu's stake.
Comments