BIDU-SW (09888) surged 5.02% during the intraday session on Monday, driven by the company's announcement that it is evaluating a potential spin-off and independent listing of its subsidiary Kunlunxin (Beijing) Technology Co., Ltd.
According to a clarification issued by BIDU-SW, the company is currently assessing the proposed spin-off and IPO of Kunlunxin. If pursued, the move would require regulatory approvals, with no guarantee of completion. Analysts, including J.P. Morgan, view this as a transformative step for BIDU-SW, shifting its investment narrative from a traditional search advertising firm to an AI infrastructure provider. The bank projects Kunlunxin's revenue could surge sixfold by 2026, significantly boosting BIDU-SW's growth prospects.
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