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<Research>Daiwa Reiterates Buy on BIDU-SW, Expects Kunlunxin Spin-off to Trigger Re-Rating
BIDU-SW (09888.HK)'s 4Q25 revenue aligned with expectations, while its earnings performance beat forecasts, thanks to cost control that boosted its gross margin, according to a...
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<Research>Daiwa Reiterates Buy on BIDU-SW, Expects Kunlunxin Spin-off to Trigger Re-Rating
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BIDU-SW (09888.HK)  -3.600 (-3.069%)    Short selling $139.35M; Ratio 18.046%   's 4Q25 revenue aligned with expectations, while its earnings performance beat forecasts, thanks to cost control that boosted its gross margin, according to a Daiwa research report.

Management revealed that the plan to spin off Kunlunxin is still progressing, which Daiwa believes will serve as a short-term catalyst for valuation. In the broker's estimate, the implied equity value of Kunlunxin per share is already equivalent to about half of BIDU-SW's latest market cap, which is likely to trigger a significant re-rating.

Related NewsCLSA: BIDU-SW (09888.HK) Quarterly Results in Line; Growth Expected to Resume in 2H; Rating Kept at Outperform
Daiwa has reiterated a Buy rating on BIDU-SW and lifted its target price from HKD171 to HKD175.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-03-04 12:25.)

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