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

[winston]

vested

Brokers' Post-Result Views, Ratings, TPs on BABA-SW (09988.HK) (Table)

Brokers│Ratings on H-share│TPs (HKD)

Jefferies│Buy│328
Goldman Sachs│Buy (Conviction Buy List)│321
Macquarie│Outperform│326->311
JPMorgan│Overweight│295->260
UBS│Buy│273->253
Credit Suisse│Outperform│245->226

Related News: BABA-SW 1FQ Operating Income Down 11% YoY to RMB30.847B

Brokers│Views

Macquarie│Overall sector in precarious position
Jefferies│Diverse strategies for long-term growth
Goldman Sachs│Non-GAAP EPS beats, but revenue weakens
Citigroup│Revenue slightly misses; profit beats
Nomura│Quarterly result broadly in line
JPMorgan│On the way to become a multi-purpose e-commerce platform
Morgan Stanley│EBITA beats on the back of lower expense in community group buying business
UBS│Cut client management and cloud revenue growth forecast
Credit Suisse│Quarterly result in line; strategic investments see progress but still face challenges

Source: AAStocks Financial News

[winston]

not vested

Valuation

We maintain BUY with unchanged TP of HK$293 based on our unchanged SOTP methodology, with the following assumptions:
(1) 24x (pegged to historical average PE) on FY3/23F normalized net profit for e-commerce (HK$229);
(2) fair value of substantial investee companies (HK$35); and
(3) net cash as at end-FY23F (HK$29).

Source: DBS

https://www.dbs.com.sg/treasures/aics/s ... 988_HK.xml

[winston]

vested

BABA-SW Reportedly Foresees Less CN Tax Concession on Internet Sector, Cost May Soar Billions of USD

BABA-SW (09988.HK) at the investor conference call, revealed that Chinese government will start trimming tax concession on internet sector with Beijing ramping up the scrutiny over the the industry, as a result of which big Chinese firms will have to increase billions of US dollars of cost, Bloomberg cited people with the knowledge of the matter.

Based on Tmall operators' assumption, the effective tax rate in September's quarter is 20%, above the 8% a year ago, report claimed.

To this, BABA-SW declined to comment.

Daiwa: CN Internet Regulatory Risk Lingers on in Near Term; Still Upbeat on TENCENT (00700.HK), MEITUAN-W (03690.HK)

Source: AAStocks Financial News

[winston]

vested

Alibaba's current Total Cash per Share is $177.75.

The company's Total Debt is $181.24B, and its current share price is $196.39.

The 25 Wall Street analysts following Alibaba see its shares trading at an average price of $275.30, 12 months from now, with a high forecast of $336.00 and a low forecast of $190.00.

The average Alibaba price target represents a 40.18% change from the last price of $196.39.

Source: Tip Ranks

[winston]

not vested

BlackRock cashes out $117b Alibaba stake

BlackRock, the world's largest asset manager, has slashed its 88.3 percent stake in Alibaba (9999) in the second quarter, involving 74.03 million shares and cashing out around HK$117 billion.

Its shareholding value has been reduced by nearly US$17 billion (HK$132 billion) - from US$19.01 billion to US$2.23 billion - from a quarter ago.

The number of shares fell from 83.86 million to 9.83 million, as of June 30 and Alibaba now accounts for only 0.06 percent of BlackRock's portfolio from 0.56 percent.

Even excluding the fluctuations in Alibaba during the period, BlackRock's cash from the Alibaba sale is estimated at US$15 billion, or HK$117 billion. The reduction in the second quarter is the largest change in BlackRock's 30 largest positions.

Source: The Standard

https://www.thestandard.com.hk/section- ... baba-stake

[winston]

Alibaba Group: How Good It Is In 4 Charts

Summary

The thesis of this article is that Alibaba Group is not only good as a business but also as an investment under current conditions.

As a business, BABA enjoys a wide moat, superb return on capital employed (“ROCE”), and capital allocation flexibility that compares competitively against similar stocks.

And as an investment, it features one of the most attractive valuations when adjusted for ROCE and cash holdings under the current market condition.

Source: Seeking Alpha

https://seekingalpha.com/article/445005 ... must_reads

[winston]

vested

Alibaba Cloud data leak ‘violated Cybersecurity Law’ in 2019 and must rectify, local Chinese telecoms regulator says

The Zhejiang Communications Administration said last month that Alibaba disclosed user information without consent, following a complaint about the 2019 incident

Alibaba Cloud said it has already taken corrective measures but did not provide details

by Coco Feng

Source: SCMP

https://www.scmp.com/tech/policy/articl ... 9-and-must

[winston]

vested

Alibaba-backed community group buying start-up Nice Tuan ceases operations in some cities, lays off workers

Nice Tuan employees said the firm is halting operations in multiple cities amid higher competition and setbacks from Beijing’s tech crackdown

Once a darling of the community group buying industry, the Alibaba-backed start-up has found it tough to compete against tech giants Meituan, Pinduoduo and Didi

by Jane Zhang and Tracy Qu

Source: SCMP

https://www.scmp.com/tech/tech-trends/a ... uan-ceases

[winston]

vested

CN Reportedly Seeks to Break Up Ant Group's Alipay

The Chinese government is seeking to break up Alipay from Ant Group and create an independent application for the company's loans business, reported Financial Times, citing people familiar with the matter.

Source: AAStocks Financial News

[winston]

China plans to break up Ant's Alipay and force creation of separate loans app: report

Beijing wants to break up Alipay, the hugely popular payments app owned by Jack Ma's Ant Group, and create a separate app for the company's highly profitable loans business, the Financial Times reported on Sunday.

The plan will also see Ant turn over the user data that underpins its lending decisions to a new credit scoring joint-venture, which will be partly state-owned, the newspaper reported, citing two people familiar with the process.

State-backed firms are set to take a sizeable stake in Ant's credit-scoring joint venture for the first time, three people told Reuters last week.

The partners plan to establish a personal credit-scoring firm wherein Ant and Zhejiang Tourism Investment Group Co Ltd (ZJGVTT.UL) will each own 35% of the venture, while other state-backed partners, Hangzhou Finance and Investment Group and Zhejiang Electronic Port, will each hold slightly more than 5%, said one of the people.

Source: Reuters

https://www.thestandard.com.hk/breaking ... pp:-report