CITIC SEC: Maintains "buy" rating for BIDU-SW (09888), expecting revenue and profit to gradually reach turning point.

CITIC SEC released a research report stating that it is expected that in the first quarter of 2025, BIDU-SW (09888) cloud computing business will increase by 20.0% year-on-year, benefiting from strong growth in GPU and AI demand. Looking ahead, the bank expects that with the macroeconomic recovery, AI search commercialization, and the weakening base effect, the company's revenue and profits are likely to gradually reach a turning point. In the medium term, with the empowerment of multiple business lines by AI, the bank expects the commercialization process to proceed smoothly, with a focus on cloud business scenarios and cost optimization, and continued improvement in AI performance contribution. Taking into account the potential performance recovery and revaluation of new business in the future, the bank maintains a "buy" rating on the company.