Baidu's stock price once surged nearly 9% in Hong Kong, before reaching its highest level since September 2023. Previously, the company proposed to split Kunlun Core and go public independently. Considering the discounted valuation of A-shares and Hong Kong stocks and industry trends, Jefferies estimated the valuation range of Kunlunchip at 16 billion to 23 billion US dollars; based on Baidu's shareholding ratio of the subsidiary, the corresponding valuation of this portion of equity is about 9 billion to 13 billion US dollars. Jefferies analyst Thomas Chong and others pointed out in the research report that the purpose of this spin-off is “to fully unleash the value of Kunlun Core, increase its market attention, broaden financing channels, and strengthen management accountability mechanisms in a performance-oriented manner. Furthermore, the spin-off will also help Baidu revalue in the AI-driven business segment.” Jefferies analysts raised Baidu's target price by 14% to HK$176.

Baidu's stock price once surged nearly 9% in Hong Kong, before reaching its highest level since September 2023. Previously, the company proposed to split Kunlun Core and go public independently. Considering the discounted valuation of A-shares and Hong Kong stocks and industry trends, Jefferies estimated the valuation range of Kunlunchip at 16 billion to 23 billion US dollars; based on Baidu's shareholding ratio of the subsidiary, the corresponding valuation of this portion of equity is about 9 billion to 13 billion US dollars. Jefferies analyst Thomas Chong and others pointed out in the research report that the purpose of this spin-off is “to fully unleash the value of Kunlun Core, increase its market attention, broaden financing channels, and strengthen management accountability mechanisms in a performance-oriented manner. Furthermore, the spin-off will also help Baidu revalue in the AI-driven business segment.” Jefferies analysts raised Baidu's target price by 14% to HK$176.