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

[winston]

vested

Brokers│Views

Jefferies│Alibaba focuses to improve user experience

Macquarie│Alibaba is gradually advancing towards annual goals

Citi│Quarterly profit beat

Daiwa│Profit was foreseen to have further headroom

Credit Suisse│Quarterly adjusted EBITA margin beat; recovery was on track

Morgan Stanley │Alibaba is gradually recovering

HSBC Global Research│GMV returned to positive growth in mid-February; momentum may continue

Goldman Sachs│Quarterly results beat on cost optimization; consumer sentiment regained momentum

UBS│Profit beat remarkably; consumer sentiment showed signs of improvement

Source: aastocks.com

http://www.aastocks.com/en/stocks/news/ ... t-news/HK6

[winston]

vested

Alibaba Group (9988 HK / BABA US) - Beginnings of recovery; Stay positive

Alibaba’s (9988 HK) 3QFY23 (financial year ending Mar 2023) results came in above expectations, with revenue and adjusted earnings per share (EPS) beating consensus by 1% and 18% respectively.

The operating environment was still relatively weak during the period before Lunar New Year but improved thereafter in Feb 2023.

Management was optimistic for the rest of calendar year 2023, as some merchants have indicated that they were looking forward to growing sales strongly in this year, to recoup their losses during the past 3 years.

The company believes that the impact of artificial intelligence (AI) technology on their businesses will be positive.

Generative AI technology can be integrated into their businesses to aid in content generation and more targeted ads.

Alibaba’s cloud business will also be in a good position to benefit from the exponential growth in demand for computing power due to adoption of AI technology.

Overall, while we still see Alibaba’s core business sliding over the long term, FY24 should be a strong recovery year for the company as:
1) CMR should post stronger growth than gross merchandise value (GMV) in FY24 due to Covid-related one-off disruptions in FY23;
2) GMV should see a cyclical recovery together with the economy in FY24;
3) earnings expectations are still relatively low at 13% year-on-year (YoY) growth and;
4) relatively low valuations are supportive of further upside.

We tweak our FY23 and FY24 EPS forecasts slightly and maintain our FV at HKD137 (9988 HK) / USD140 (BABA US). BUY.

Source: OCBC

[behappyalways]

中國再現"大型割韭菜"現場? 螞蟻集團分紅2次 馬雲等人自願上繳國庫? 北京整肅腳步未停 中企大老持續出走｜記者 業俐緯│【國際大現場】20230228│三立新聞台
https://m.youtube.com/watch?v=2KNHdkCLTD0&t=6s

[winston]

vested

ALIBABA GROUP (9988 HK / BABA US)

Recommendation : BUY
Fair Value : HKD 137.00 (9988 HK) / USD 140.00 (BABA US)

BEGINNINGS OF RECOVERY; STAY POSITIVE. S

Weak customer management revenue (CMR), but offset by margin beat on cost control

Despite longer-term concerns around loss of market share, FY24 should be a strong cyclical recovery year for Alibaba

Maintain fair value (FV) at HKD137 (9988 HK) / USD140 (BABA US)

Alibaba’s (9988 HK) 3QFY23 (financial year ending Mar 2023) results came in above expectations, with revenue and adjusted earnings per share (EPS) beating consensus by 1% and 18% respectively.

The operating environment was still relatively weak during the period before Lunar New Year but improved thereafter in Feb 2023.

Management was optimistic for the rest of calendar year 2023, as some merchants have indicated that they were looking forward to growing sales strongly in this year to recoup their losses during the past 3 years.

The company believes that the impact of artificial intelligence (AI) technology on their businesses will be positive. Generative AI technology can be integrated into their businesses to aid in content generation and more targeted ads.

Alibaba’s cloud business will also be in a good position to benefit from the exponential growth in demand for computing power due to adoption of AI technology.

Overall, while we still see Alibaba’s core business sliding over the long term, FY24 should be a strong recovery year for the company as:
1) CMR should post stronger growth than gross merchandise value (GMV) in FY24 due to Covid-related one-off disruptions in FY23;
2) GMV should see a cyclical recovery together with the economy in FY24;
3) earnings expectations are still relatively low at 13% year-on-year (YoY) growth and;
4) relatively low valuations are supportive of further upside.

We tweak our FY23 and FY24 EPS forecasts slightly and maintain our FV at HKD137 (9988 HK) / USD140 (BABA US).

Source: OCBC

[winston]

Jack Ma Reportedly Rejects Beijing's Invitation to Return to CN

The Chinese government has been attempting to persuade Alibaba Group's founder Jack Ma to return to China, in order to help Beijing repair its reputation with the private business sector, Bloomberg News cited people with knowledge of the matter.

Such proposal, however, was turned down by the Chinese billionaire, who mentioned that he has stepped down from his position at the e-commerce giant and will instead concentrate on exploring agricultural technologies, the report added.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... t-news/HK6

[behappyalways]

Alibaba Shares Jump As Jack Ma Makes Rare Appearance In China
https://www.zerohedge.com/markets/aliba ... ance-china


After long absence from China, Jack Ma makes rare appearance to visit school in Hangzhou
https://m.youtube.com/watch?v=OgSvKgdat78

[winston]

vested

Alibaba plans to split into six units, explore new IPOs

Alibaba Group Holding plans to split its US$220 billion ($292.14 billion) empire into six units that will individually raise funds and explore initial public offerings.

Regulators have been concerned that concentrated power in tech suppressed innovation.

Alibaba and Tencent invested in hundreds of startups over the years, often helping to craft strategy as they grew.

Xi Jinping administration’s clampdown on internet spheres, wiped out more than US$500 billion of its value.

Source: Bloomberg

https://www.theedgesingapore.com/news/c ... e-new-ipos

[winston]

not vested

ALIBABA GROUP (9988 HK / BABA US)

Recommendation : BUY
Fair Value : HKD 137.00 (9988 HK) / USD 140.00 (BABA US)

SPLITTING UP OF GROUP = REALISATION OF UNDERLYING VALUE? . S

Alibaba announced plans to split its business into 6 main units

Restructuring move should be a positive catalyst to share price as underlying value of businesses can be realised

Reiterate FV of HKD137 / USD140

Besides looking forward to the positive impact of broad recovery on Alibaba Group’s earnings and share price, investors now have another catalyst to look forward to.

We believe the split of the existing group into 6 business units should not have a significant impact on the operations of the existing businesses in the near to mid-term but could provide a catalyst for the market to realise the fair value of its businesses and catalyse its share price.

We continue to reiterate our fair value (FV) of HKD137 / USD140.

Source: OCBC

[winston]

not vested

Alibaba break-up will unlock value, cut risk

The historical reorganization would improve the businesses except for the China e-commerce unit and help Alibaba's stock price to rebound, according to Goldman Sachs.

With its Hong Kong shares trading at only 10 times of its estimated earnings for the next 12 months, Alibaba's valuation trails that of major rival JD.com (9618), which has double-digit multiples.

Except for the China e-commerce unit, every business recorded an operating loss for the nine months ended December 2022. And the China e-commerce unit, which accounted for 68 percent of total revenue, reported a 1 percent dip over the same period amid fierce competition with JD.com and Pinduoduo.

Source: Bloomberg

https://www.thestandard.com.hk/section- ... ,-cut-risk

[winston]

not vested

Alibaba's US$20b logistics arm is gearing up for listing in city

by Themis Qi

Cainiao Network Technology, the logistics arm of Alibaba (9988), has started preparations with banks for its Hong Kong initial public offering.

Targeting a listing as soon as the end of this year.

Cainiao promises to deliver packages in China within 24 hours and anywhere else in the world in 72 hours. It directly operated nine overseas sorting centers and partnered with more than 500 logistics companies globally as of March 2022.

The Alibaba arm's revenue, after inter-segment elimination, rose 27 percent on a year-on-year basis to 16.6 billion yuan (HK$18.9 billion) for the three months ended December 31.

Source: The Standard

https://www.thestandard.com.hk/section- ... ng-in-city