BIDU(09888) KAIYUAN SECURITIES·2025-02-21 14:56Investment Rating - The investment rating for Baidu Group-SW is "Buy" (maintained) [6][13]. Core Views - The growth of intelligent cloud services is accelerating due to AI, and the advertising business is expected to gradually recover with the macroeconomic environment and AI search commercialization [6]. - The non-GAAP net profit forecast for 2025-2026 has been slightly adjusted to 27.1 billion and 29.4 billion CNY respectively, with a new forecast for 2027 at 32 billion CNY, corresponding to year-on-year growth rates of 0.2%, 8.7%, and 8.7% [6]. - The current stock price of 88.35 HKD corresponds to a PE ratio of 8.7, 8.0, and 7.4 for 2025-2027 [6]. Financial Summary and Valuation Indicators - Revenue for 2023 was 134.6 billion CNY, with a year-on-year growth of 8.8%. For 2024, revenue is expected to decline slightly by 1.1% to 133.1 billion CNY, followed by a growth of 3.2% in 2025 [9]. - Non-GAAP net profit for 2023 was 28.7 billion CNY, with a year-on-year growth of 39.0%. The forecast for 2024 is a decline of 6.1% to 27.0 billion CNY, with a slight recovery in 2025 [9]. - The gross margin for 2025 is projected to be 51.3%, while the net margin is expected to be 19.7% [9]. - The diluted EPS for 2025 is estimated at 9.4 CNY, with a PE ratio of 8.7 [9].