Alibaba (BABA)/ 9988 HK; Jack Ma 03 (May 21 - Jun 25)

[winston]

not vested

China's Bull Market Keeps Growing. 4 Reasons to Buy Alibaba Like There's No Tomorrow.

by Geoffrey Seiler

1. Alibaba is leading the way with AI
2. Alibaba is turning around its core e-commerce businesses
3. Emerging businesses offer Alibaba some good upside
4. Alibaba's stock is attractively valued

Source: The Motley Fool

https://finance.yahoo.com/news/chinas-b ... 00997.html

[behappyalways]

Jack Ma-Backed Ant Slashes AI Training Costs With Chinese Chips
https://www.zerohedge.com/technology/ja ... nese-chips

[winston]

not vested

Alibaba gives Taobao on-demand delivery an upgrade in Meituan, JD.com competition

Food delivery service Ele.me is handling orders for Taobao Instant Commerce as e-commerce giants compete on speed

Alibaba Group Holding has promised faster delivery service and more subsidies to consumers in China as it moves to take on JD.com and Meituan amid intensifying competition in the country’s e-commerce market.

Alibaba has launched an upgraded service called Taobao Instant Commerce, which covers not only food, but also other goods that meet the “time-sensitive needs of consumers”, including electronics, clothing and flowers, the company’s e-commerce unit said on Wednesday.

Ele.me, Alibaba’s food delivery arm, is handling orders from the new service, which has rolled out in 50 Chinese cities and will expand to all Taobao users in the country by May 6, according to a person familiar with the matter.

Source: SCMP

https://www.scmp.com/tech/big-tech/arti ... pe=section

[winston]

not vested

Alibaba misses quarterly revenue estimates

By Deborah Sophia & Casey Hall

(May 15): Chinese e-commerce giant Alibaba reported quarterly revenue that missed Wall Street estimates on Thursday.

Alibaba reported revenue of 236.45 billion yuan (US$32.79 billion or RM140.6 billion) in its fiscal fourth quarter ended March 31, compared with analysts' estimates of 237.24 billion yuan, according to data compiled by LSEG.

Source: Reuters

https://theedgemalaysia.com/node/755315

[winston]

not vested

BABA-W Eddie Wu: AI+Cloud Envisioned to Become New Growth Engine for LT Development

BABA-W (09988.HK) announced its fourth-quarter and FY2025 results as of the end of March.

Eddie Wu, Chief Executive Officer of Alibaba Group, said that the group’s results demonstrate the ongoing effectiveness of its “user first, AI-driven” strategy, with core business growth continuing to accelerate.

Customer management revenue at Taobao and Tmall Group grew 12% last quarter, reflecting the sustained impact of investments in user experience and effective monetization.

The number of 88VIP members, its highest spending consumer group, continued to increase by double digits year-over-year, surpassing 50 million.

Related News: BABA-W Last FQ Non-GAAP NP Grows 22% to RMB29.85B; Adj. EBITA Up 36% In Line

Looking ahead, the group will remain focused on its core businesses and continue to drive AI + Cloud as a new engine for its long-term growth

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

vested

4QFY25: Slight Earnings Miss; CMR Delivers Better-than-Expected Double-Digit

Growth Alibaba’s 4QFY25 earnings slightly missed expectations.

Revenue grew 7% yoy to Rmb236.5b, in line with the street’s estimate.

Non-GAAP net profit rose 22% yoy to Rmb29.8b, missing consensus forecasts, with net margin of 12.6%.

CMR revenue growth of 12% yoy exceeded expectations, propelled by the introduction of service fees, take rate improvement and the national subsidies programme.

Maintain BUY with a lower target price of HK$165.00 (US$165.00).

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

<Research>M Stanley: BABA-W's 4QFY25 CMR Beats; Cloud In Line

Morgan Stanley published a report on BABA-W (09988.HK) (BABA.US), which unveiled its 4QFY25 results ending March, with total revenue climbing 7% compared to the same period last year, in line.

CMR grew by 12%, beating the broker's and street consensus by 2% and 3%, respectively.

Cloud business revenue elevated 18% YoY, meeting expectations but missing the buy-side expectation of 20%.

Alibaba's adjusted EBITA added by 36% YoY, surpassing the broker's expectations by 6%.

Taobao and Tmall Group's adjusted EBITA gained 8% compared to the same period last year, topping the broker's and street consensus by 6% each.

The 4QFY25 capex reached RMB24.6 billion, vs RMB31.8 billion in 3FQ.

The full-year capex was RMB86 billion, equivalent to 9% of revenue.

Morgan Stanley rated Alibaba's US shares at Overweight with a target price of USD180.

Source: AASTOCKS Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

vested

Analysts see long-term upside in Alibaba despite earnings miss

by Luke Juricic

Results were weighed down by weakness in logistics arm Cainiao and continued investment in international and local services.

Cloud Intelligence Group, which delivered 18% year-over-year revenue growth to RMB30.1 billion.

“Taobao Tmall beat on customer management revenue by 3%, aided by improved take rates and promotional tools”.

Source: investing.com

https://finance.yahoo.com/news/analysts ... 45984.html

[winston]

vested

Cloud revenue to accelerate

Alibaba's revenue grew 6.6% yoy to Rmb236.5bn in 4QFY3/25, slightly lower than our expectation, mainly dragged by 12% yoy decrease in Cainiao revenue.

4QFY25 non-GAAP NP up 22% yoy to Rmb30bn, largely in line with our expectation, but lower than consensus, due to increasing selling expenses for user acquisition.

In 4QFY3/25, capex reached Rmb24.6bn, slightly lower than market’s expectation.

Management maintains its Rmb380 bn capex plan for the next three years.

We forecast revenue/non-GAAP NP to rise 7.2%/8.9% in 1QFY3/26F.

Reiterate Add, with a slightly higher DCF-based TP of HK$172.

Source: CGS

https://rfs.cgsi.com/api/download?file= ... DA92551F86

[winston]

Alibaba Group (9988 HK / BABA US)

Recommendation : BUY
Fair Value : HKD 160.00 (9988 HK) / USD 164.50 (BABA US)

E-COMMERCE AND CLOUD EXECUTION ON TRACK

• Key drivers remain intact
• Sustainable Taobao Tmall Group (TTG) growth
• Cloud revenue to accelerate

Summary (9988 HK): Alibaba reported a mixed 4QFY25 results as revenue from Taobao Tmall Group (TTG) and Customer Management Revenue (CMR) came in ahead of expectations and rose 8% and 12% year-on-year (YoY) respectively.

Although Cloud revenue growth accelerated to 18% YoY in 4QFY25, it was still below investors’ elevated expectation of +20% YoY.

This, coupled with a sequential decline in cloud margin to 8% and CAPEX to CNY24.6b, have raised concerns about Alibaba’s artificial intelligence (AI) investments and its long-term growth potential, resulting in a 7.5% pullback in the American Depositary Shares (ADS) overnight.

Management remains committed in reinvesting in AI and reiterated the trend on AI adoption, which we believe should help ease investors’ concerns.

The investment thesis on Alibaba stays intact and the stock remains as one of our preferred plays in the internet and platform industry (alongside Tencent, 700 HK) given:
i) improving TTG momentum with domestic e-commerce market share stabilising; ii) riding on secular AI growth;
iii) benefitting from more consumer stimulus;
iv) Alibaba International Digital Commerce Group (AIDC) to achieve its first quarter of profitability in FY2026; and
v) ongoing focus on shareholder’s return.

Alibaba is China’s largest cloud hyperscaler with leading generative AI capabilities and a primary focus on external cloud.

We believe the company is well positioned to benefit from the broadening and an acceleration of AI adoption in China.

Our sum-of-the-parts (SOTP) fair value (FV) estimate is at HKD160.00 and implies 16x forward price-to-earnings (P/E).

The stock is currently trading at 11.6x forward P/E, which is close to -0.25 s.d. to historical average.

Source: OCBC