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

[winston]

vested

Alibaba said to launch direct online retail model to complement Taobao, Tmall platforms amid increased competition, weak consumer spending

A new app to be launched via Tmall will establish an online retail model in which Alibaba will directly source, buy, store and market goods

A number of consumer electronics brands have already started talks with Alibaba ahead of this launch

by Tracy Qu

Source: SCMP

https://www.scmp.com/tech/big-tech/arti ... ent-taobao

[behappyalways]

China Tells Banks, SOEs to Report Exposure to Jack Ma’s Ant
https://www.theedgesingapore.com/news/c ... ck-mas-ant

[winston]

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SoftBank seen trimming Alibaba stake to fill shortfall — analyst

by Sam Nussey

SoftBank sold 20 million Alibaba, shares in the last quarter and "will need to sell more in 2022," Jefferies analyst Atul Goyal wrote in a note.

The group will need $40 billion-45 billion of cash this year, Goyal estimates, if it maintains the current pace of investing in startups and share repurchases as part of the 1 trillion yen ($8.7 billion) programme announced in November.

Source: Reuters

https://www.theedgemarkets.com/article/ ... ll-analyst

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Alibaba posts slowest-ever revenue growth since 2014

Net income attributable to shareholders slumped to 20.43 billion yuan (HK$25.22 billion) in the third quarter from 79.43 billion yuan a year earlier.

Revenue rose about 10 percent to 242.6 billion yuan.

Annual active consumers of the Alibaba ecosystem across the world reached approximately 1.28 billion in 2021, up by about 43 million from the 12 months ended September 30, 2021. This included 979 million consumers in China and 301 million consumers overseas, representing a quarterly net increase of over 26 million and 16 million respectively.

Singles' Day recorded gross merchandise value growth of 8.5 percent, a record low.

Repurchased approximately 10.1 million of its AMerican depositary shares for approximately US$1.4 billion (HK$10.9 billion) this quarter.

Source: Reuters

https://www.thestandard.com.hk/section- ... since-2014

[winston]

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Alibaba Group (9988 HK)
3QFY22: Continued Slowing Growth Marred By Macro Headwinds

Alibaba continued to deliver sluggish results in 3QFY22.

Revenue growth slowed to 10% (2QFY22: 29%) to Rmb242.6b, in-line with our and street’s estimates.

Customer management revenue reported -1% yoy growth as a result of continued merchant support initiatives.

Non-GAAP net profit was Rmb44.6b, down 25% yoy, in-line with street’s estimates.

Maintain BUY with a lower target price of HK$130.00 (US$133.00).

Source: UOBKH

https://research.uobkayhian.com/content ... f3e5923003

[winston]

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

On BABA-SW (09988.HK):

Brokers│Ratings│TPs (HKD)

Jefferies│Buy│287->277
JPMorgan│Overweight│175
Credit Suisse│Outperform│170->173
Daiwa│Buy│160->155
UBS│Buy│161->146
------------------------------------------------
On Alibaba Group Holding (BABA.US) -0.790 (-0.720%) :

Related News: BABA Splashes US$1.4B to Repurchase ADSs in 3FQ

Brokers│Ratings│TPs (USD)
Jefferies│Buy│295->285
Citigroup│Buy│216
JPMorgan│Overweight│180
Haitong International│Outperform│180
Credit Suisse│Outperform│175->179
Nomura│Buy│173
Morgan Stanley│Overweight│165
UBS│Buy│165->150
------------------------------------------------

Brokers│Views

Jefferies│Multiple revenue growth drivers could enable company to capture forthcoming opportunities
Citigroup│Quarterly revenue missed forecast; earnings ahead of forecast
JPMorgan│Subdued results in line with market's expectations; Initiative on cost optimization viewed as positive surprise
Haitong International│Short-term pressure projected to persist; outlook may improve after end-March 2022
Credit Suisse│Macro weakness continued to weigh down results but losses from new investments may have reached peak.
Nomura│Quarterly revenue missed forecast; earnings ahead of forecast
Morgan Stanley│Customer management revenue declined, missing forecast; revenue growth for cloud business and international e-commerce segments further slowed down
Daiwa│Growth trend facing difficulty
UBS│Results anticipated to reach trough this FQ; growth improvements likely gradual

Source; AAStocks Financial News

[winston]

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Alibaba Stock: A Long Term Play With Solid Upside

by Amit Singh

Devitt’s bullish view is centered around Alibaba’s large market share in China and investments in growth initiatives (including cloud services, content, and multi-channel retail).

Source: Tip Ranks

https://www.tipranks.com/news/article/a ... M0Y0JjE%3D

[winston]

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Alibaba’s cloud services business emerges as bright spot for tech giant amid slower growth in core e-commerce operations

Alibaba Cloud operates in a domestic market that is worth about US$158 billion annually
This business unit currently offers cloud computing services in 25 regions around the world

by Ann Cao

In the three months ended December 31, Alibaba Cloud revenue totalled 19.54 billion yuan, up 20 per cent from a year earlier.

This segment contributed 8 per cent to the group’s overall revenue of 242.58 billion yuan last quarter.

Alibaba Cloud recorded a 134 million yuan profit last quarter, recovering from a 221 million yuan loss a year earlier.

Offers cloud computing services in 25 regions around the world.

In June last year, Alibaba announced a US$1 billion investment to develop its cloud services in Southeast Asia.

Alibaba Cloud, however, faces plenty of challenges, from increased competition to volatile overseas markets.

On the mainland, Alibaba Cloud continues to lead the market. It had a 38.3 per cent share of market spending in cloud infrastructure services on the mainland in the third quarter last year.

Source: SCMP

https://www.scmp.com/tech/big-tech/arti ... giant-amid

[winston]

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From growth of scale to optimizing efficiency

Alibaba reported 3Q FY3/22 revenue of Rmb243bn, up 9.7% yoy, slightly below our
expectation, mainly because of a yoy decline in CMR in the China commerce retail
segment due to low single-digit GMV growth and more support to merchants.

We expect Alibaba to meet its goal of 1bn China AACs in the next quarter; management guided that international AACs would double in the next few years.

The losses of Taobao Deals and Taocaicai are expected to gradually narrow in the next
few quarters, owing to improving order density and supply chain performance.

AliCloud will focus on converting hybrid cloud customers to public cloud and adding
customers in new industries, such as financial services, telecom, new energy vehicles
and healthcare.

Reiterate Add with a new DCF-based TP of HK$170.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... AAD16E3DF2

[winston]

vested

Alibaba Group (BABA US / 9988 HK) - Macro headwinds well anticipated; losses for some new initiatives to narrow

Alibaba’s 3QFY22 results were broadly in-line with expectations.

Revenue grew 10% YoY to RMB243b, or 1% below consensus.

China commerce revenue grew 7% YoY, with customer management revenue growth down 1% YoY, which we believe can be attributed to slower GMV growth and lower monetization on the back of merchant support.

Non-GAAP EPS dropped 25% YoY to RMB16.9, which came in 5% above consensus estimates.

On the earnings call, management shared that they are expecting Taobao Deals and Taocaicai to narrow losses in the coming quarters on the back of efficiency enhancements, which we believe should be welcomed by the market.

Management believes that the market has not placed sufficient value on its multi-engine structure, and notes that it plans to continue with its share repurchases at current price levels.

We are also encouraged to hear that the management team remains open to bringing in more diverse investor bases for units that are able to operate as independent companies, which in our view could help unlock value for shareholders.

In our view, the narrative is headed in an incrementally positive direction, as some of the new initiatives are slated to narrow losses.

Macro headwinds on consumption could certainly still weigh on GMV growth, but we believe that this is more transient in nature.

Following adjustments to our assumptions, we reduce our FV from USD201 (BABA US) / HKD194 (9988HK) to USD181 (BABA US) / HKD175 (9988 HK). BUY.

Source: OCBC