On January 27, analysts from Barclays articulated in a research report that the Hong Kong Stock Exchange listing of Kunlunxin is poised to unlock additional value for its parent company, Baidu (09888.HK). Presently, Baidu's core advertising sector is grappling with significant pressure. Analysts highlight that with the burgeoning integration of AI chatbots into consumers' mobile devices, the utilization of traditional search engines may witness a more pronounced decline. Nevertheless, analysts are of the view that investor fervor surrounding Baidu's AI chip division has effectively counterbalanced the hurdles faced by its advertising arm. They anticipate that by 2027, Kunlunxin's revenue will surge to a range of $1.5 billion to $2 billion. Given a valuation between $25 billion and $30 billion, Baidu's 60% ownership stake in Kunlunxin has the potential to yield a value increment spanning from $15 billion to $18 billion.
