Alibaba (BABA)/ 9988 HK; Jack Ma 04 (Dec 23 - Dec 26)

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

Postby winston » Mon May 19, 2025 9:54 am

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
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 112006
Joined: Wed May 07, 2008 9:28 am

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

Postby winston » Tue Jul 01, 2025 3:30 pm

vested

5 Reasons to Buy Alibaba Stock Like There's No Tomorrow

by Geoffrey Seiler

Alibaba is becoming an artificial intelligence leader in China.

Meanwhile, the turnaround of its e-commerce business is in full effect.

The stock remains cheap, and the company has opportunities in other areas too.


Source: The Motley Fool

https://finance.yahoo.com/news/5-reason ... 00946.html
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 112006
Joined: Wed May 07, 2008 9:28 am

Re: Alibaba (BABA)/ 9988 HK; Jack Ma 04 (Dec 23 - Dec 26)

Postby winston » Thu Jul 03, 2025 11:10 am

vested

<Research>Citi Keeps Buy on Alibaba (BABA.US); On-demand Delivery & Travel Services Confirmed as Core Biz

BABA-W (09988.HK) (BABA.US) recently announced a RMB50 billion subsidy plan for Taobao Instant Commerce, according to Citi's research report.

The subsidies are expected to be distributed to consumers and merchants over 12 months, though details of the measures haven't yet been provided.

However, it is believed that the actual financial impact on the group will be less than the total subsidy amount.

In Citi's opinion, the large-scale subsidies reflect the management's satisfaction with the initial results of Taobao Instant Commerce achieving 60 million orders within two months of launch.

By integrating Ele.me and Fliggy into its China retail business, Alibaba has established the importance of on-demand delivery and travel services as core e-commerce business developments.

Anticipating cross-selling benefits between Taobao's core users and instant retail, Citi kept a Buy rating for Alibaba with a target price of USD169.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 112006
Joined: Wed May 07, 2008 9:28 am

Re: Alibaba (BABA)/ 9988 HK; Jack Ma 04 (Dec 23 - Dec 26)

Postby winston » Thu Jul 03, 2025 11:37 am

<Research>G Sachs Cuts BABA-W's TP to HKD146, Chops Earnings Forecasts on Increased Investment in Food Delivery & Instant Shopping

Alibaba (BABA.US) has already fallen by 16% over the past month, according to a report from Goldman Sachs.

The broker summarized investors' main concerns regarding:
(1) the strategic restructuring of Ele.me and Fliggy into the China e-commerce business group;
(2) the latest developments in Taobao Instant Commerce and the competitive landscape of instant retail; and
(3) Alibaba's performance during the 618 shopping festival.

Considering its vigorous business momentum but increased investment in its food delivery and instant retail businesses, Goldman Sachs lowered its FY26-28 EPS forecasts for Alibaba by 4-13%, while raising its FY26-28 revenue forecasts by 2-4%.

The broker cut its target price for Alibaba's US shares from USD159 to USD150 and for its H-shares from HKD154 to HKD146, with a Buy rating remaining in place.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 112006
Joined: Wed May 07, 2008 9:28 am

Previous

Return to A to B

Who is online

Users browsing this forum: No registered users and 4 guests

cron