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

[winston]

Ant Group’s IPO plan under the spotlight after regulatory fine, share buy-back

In Ant’s latest share buy-back plan, the offered price represented nearly a 75 per cent discount on the estimated US$300 billion valuation from its first IPO attempt in 2020

The US$984.3 million fine imposed on Ant earlier this month was smaller than the US$2.8 billion antitrust penalty slapped on Alibaba in April 2021

by Ann Cao & Tracy Qu

Source: SCMP

https://www.scmp.com/tech/big-tech/arti ... 6c207d21e6

[winston]

vested

Alibaba Group (9988 HK)
Solid 1QFY24; Taobao+Tmall DAU/Time Spend To Be The Key Focus

Alibaba is seeing continuous moderate consumption recovery persist in the near term, leading to high single-digit top-line growth for the June quarter.

We reckon revenue growth should recover to double digits in FY24, empowered by new strategies which bode well for steady consumption recovery (reflected by the 618 shopping gala).

Alibaba still offers an attractive risk-reward opportunity on the back of its restructuring
plan.

Maintain BUY. Target price: HK$130.00 (US$130.00).

Source: UOBKH

https://research.uobkayhian.com/content ... dcdd4683b8

[winston]

not vested

Alibaba Just Flashed Green, Very Green

by SAM QUIRKE

Key Points

Key headwinds from recent years continue to dissipate, with last week's news perhaps the biggest.

Even with the recent rally, shares remain comparatively cheap.

They're well-supported technically and on the verge of crossing the $100 mark.

The stock is still trading around where it IPO'd in 2014, and its price-to-earnings (PE) ratio is only 25. Compare that to its closest American peer, Amazon.com Inc NASDAQ: AMZN, whose shares are currently at 2020 levels and carry a PE ratio of 315.

Source: Market Beat

https://www.marketbeat.com/originals/al ... 4A8F75D6B5

[winston]

not vested

Easing regulatory environment

On 7 Jul, the People’s Bank of China (PBOC) had proposed a fine of Rmb7.12bn on Alibaba’s affiliate Ant Group, following a regulatory crackdown in late-2020.

The PBOC also stated that most of the significant issues in the financial business of platform enterprises have been rectified.

On 12 Jul, China’s National Development and Reform Commission (NDRC) praised Alibaba and other platform firms for contributions towards technological innovation.

We view these developments as a positive sign of an easing and normalisation of the regulatory environment for the Internet service industry in China.

We believe Alibaba will be a key beneficiary of an easing regulatory environment.
Reiterate Add. TP : HK$168

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 7C35D5C3C2

[winston]

not vested

CLSA Forecasts Alibaba (BABA.US) Jun-Q Rev. to Grow 8.8% YoY, Rating Buy

Alibaba (BABA.US) e-commerce returned to positive YoY growth, CLSA mentioned in its report, which forecast that total revenues will gain 8.8% YoY to RMB224 billion in the Jun-Q.

In particular, all businesses, except the cloud business, recorded faster growth.

The broker expected Taobao Tmall's CMR to grow by 6.7% YoY, thanks to a strong rebound in apparel sales and a good performance in the "618 Shopping Festival".

The group's margins may expand given positive growth in CMR and further narrowing of losses in other businesses.

CLSA foresaw the group's adjusted EBITA to rise 14.7% YoY.

Although the broker was cautious about the consumption outlook for 2H23, it believed that Taobao Tmall should maintain positive growth.

Alibaba (BABA.US) was reiterated at Buy with US$158 TP.

Source: AAStocks Financial News

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

[winston]

Listing of Ant Group is unlikely in the short term - state media

BEIJING (Reuters) - A listing of Jack Ma-backed Ant Group is unlikely in the short term, state media reported on Saturday, citing people close to regulation.

Earlier this month, Ant Group announced a surprise share buyback that valued the fintech giant at $78.54 billion, well below the $315 billion touted in the suspended IPO.

Source: Reuters

https://www.thestar.com.my/tech/tech-ne ... tate-media

[winston]

vested

Alibaba’s revenue beats estimates in first step of comeback

By Jane Zhang & Sarah Zheng

Revenue of 234.16 billion yuan (US$32.3 billion or RM148.51 billion) for the June quarter, versus an average projection of 223.75 billion yuan.

Net income rose about 50% to 34.3 billion yuan, also beating estimates.

The cloud business returned to growth, with revenue inching up 4%.

Chinese retail e-commerce revenue surged 13%.

Source: Bloomberg

https://theedgemalaysia.com/node/678196

[winston]

vested

Alibaba Q1 net jumps 51pc to 34b yuan, beats expectations

Chinese e-commerce giant Alibaba (9988) witnessed a 51 percent annual increase in net profit for the quarter ending on June 30, reaching 34.33 billion yuan (HK$37.29 billion), surpassing the expected 28.66 billion yuan.

Alibaba posted revenue of 234.16 billion yuan in the quarter, compared with analysts' estimates of 224.92 billion yuan, according to Refinitiv data.

The latest revenue figure represents an improvement from flat to 3 percent growth in the past four quarters.

Revenue in the first quarter to end-June was helped by a recovery in consumer purchases on Alibaba's Taobao and Tmall marketplaces, boosted in part by the 618 shopping festival, China's second-largest online shopping event, in June.

Customer management revenue, which tracks how much merchants spend on Alibaba, rose 10 percent to 79.7 billion yuan, thanks to an increase in merchants' willingness to invest in advertising and higher sales during the festival.

Sales at Cloud Intelligence Group, its main growth driver outside of e-commerce, reported the smallest revenue growth among the group's six business units of 4 percent, but the division's underlying profit more than doubled as its workplace collaboration tool, Dingtalk, helped to reduce costs.

China's sputtering economy and mounting competitive pressure from smaller rivals such as PDD Holdings and Douyin, the Chinese version of TikTok, pose major challenges to Alibaba.

Source: The Standard

https://www.thestandard.com.hk/section- ... pectations

[winston]

Alibaba Group (9988 HK)
1QFY24: Strong Beat On All Levels After Restructuring

Alibaba delivered solid 1QFY24 results after its restructuring.

Revenue grew 14% yoy to Rmb234.2b, 5% above street estimates.

Non-GAAP net profit was Rmb44.9b, up 48% yoy and beating street estimates by 17%, with net margin expanding 4ppt yoy to 19.2%.

Taobao and Tmall saw remarkable results from its consumer-focused strategy.

The company continues to ratchet up its effort in international expansion and AIGC development.

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

Source: UOBKH

https://research.uobkayhian.com/content ... f7bff220a1

[winston]

Broker│Opinion

CLSA│Quarterly results significantly exceeded expectations

Credit Suisse│Quarterly Gross Profit Outperforms Estimates

CMBI│Revenue Outperforms

Huatai Securities│E-commerce business recovering steadily

Morgan Stanley│Reasonable risk-return profile, encouraging outlook

Citi│Quarterly revenue and earnings significantly beat expectations

HSBC Global Research│Rising optimism

CICC│Organization and strategic adjustments paid off, revenue and profit improved across the board

BOCI│Re-engineering new values

JPMorgan│1FQ result indicators significantly beat, indicating improved fundamentals

UOB Kay Hian│Strong 1FQ results

Haitong International│Quarterly CMR beat lowered forecasts, still sees quarterly market share loss

Goldman Sachs│Revenue and earnings beat estimates

Nomura│Positive surprise from e-commerce business in mainland China

Jefferies│Attractive growth strategy, rapid growth trend in several divisions

Daiwa│Gross margins beat expectations, user growth accelerated

UBS│Strong growth in customer management revenue (CMR) drove 1FQ revenue beat

Source: AAStocks Financial News

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