Open Source Securities: Maintaining Baidu Group-SW (09888) “Buy” Rating, Kunlun, and XinHong Kong Stock Listing Process Launched

The Zhitong Finance App learned that Open Source Securities released a research report saying that maintaining Baidu Group-SW (09888) “buy” rating, Kunlunchip has begun the Hong Kong stock listing process, AI search transformation has entered a stable period, and AI marketing, AI applications, and cloud contribution revenue have increased significantly. Kunlun Core's split listing is expected to drive valuation increases, AI drives the continued expansion of cloud revenue contributions, and overseas expansion in key regions of intelligent driving.

The main views of Open Source Securities are as follows:

Kunlunchip has launched the Hong Kong stock listing process, which is expected to drive higher valuations

On January 2, 2026, Baidu Group announced that the Hong Kong Stock Exchange has confirmed that Baidu can split Kunlunchip. Kunlunchip submitted a confidential listing application to the Hong Kong Stock Exchange through a joint sponsor on January 1, and will remain a subsidiary of Baidu after the listing is completed. Kunlun Core is a self-developed chip team under Baidu. It began construction in 2011. The 2025H1 Kunlun Core P800 single cluster was verified with 30,000 cards; in the future, it is planned to launch Kunlun Core M100 (launched in 2026) and M300 (for large multi-modal models, launched in 2027).

According to the 2024 China Accelerated Computing Chip Shipment Report released by IDC, Nvidia accounts for 70% of shipments over 1.9 million units. Among the leading domestic AI chip manufacturers, the Huawei Ascend ranked first with 640,000 tablets, followed by Kunlun Core with 69,000, 38,000 days, 26,000 Cambrian, 24,000 Mu Xi, and 13,000 Suiyuan. Considering that AI applications are expected to drive inference demand to accelerate the release of superimposed domestic chip technology iterations, domestic chip demand is expected to continue to rise.

The advertising business is expected to improve marginally in the short term under a low base, focusing on the progress of AI, Kunlun Core and driverless cars

Short-term AI search transformation is stabilizing. Under a low base, Baidu's core online marketing is expected to improve month-on-month, and smart clouds drive growth; medium- to long-term AI native marketing is expected to drive Baidu's advertising business to open a second growth curve, and driverless business models accelerate overseas market expansion. In 2025Q3, the number of Radish Fast Run units increased 212% year-on-year, continuing to promote global expansion. As of October 2025, the world covered 22 cities, and domestic operating cities achieved 100% fully driverless operation. In the future, clouds, chips, and driverless cars are expected to drive higher valuations.

Risk Alerts

The macroeconomy falls short of expectations, AI progress falls short of expectations, and the monetization of intelligent driving falls short of expectations.