Alibaba (BABA)/ 9988 HK; Jack Ma 01 (May 08 - Apr 16)

[winston]

Alibaba plunges 8.7 pct on weak Q4 earnings

HONG KONG, March 20 (Reuters) - China's top e-commerce firm Alibaba (1688.HK) slid 8.7 percent after reporting a forecast-lagging 57 percent drop in its fourth quarter profit, as margins were squeezed by rising marketing costs aimed at countering the drop in global trade.

The stock was down 8.5 percent at HK$7.50 by 0315 GMT

Citigroup downgraded the stock to sell from hold, advising investors to take profit following a sharp rally, about 40 percent to date, since the begining of the year.

Alibaba, whose online site connects traders of goods into and out of China, earned 199.4 million yuan, lagging an average net profit of 281 million yuan forecast by three analysts polled by Reuters

[winston]

I'm more interested in their sister company taobao.com. I know so many people in China that shop thru it. Unfortunately, it's not listed

==============================================================

China's Alibaba Q1 net sags; new clients hit record

* Q1 net falls 15.7 pct, but beats average forecast
* Quarterly net customer additions at record high
* Sees significantly lower full-year margin in 2009 (Adds details from co statement)

By Nerilyn Tenorio

HONG KONG, May 6 (Reuters) - China's top e-commerce company Alibaba (1688.HK) posted a sharp drop in quarterly net profit year on year, although beating forecasts, as higher expenses on development and obtaining users ate into margins.

Net income declined nearly 16 percent as a result of previously announced investments in customers, people and technology, the company said on Wednesday. Alibaba, which connects millions of registered small-business buyers and sellers of Chinese products online, said registered users topped 40 million, as more buyers moved their sourcing online for higher efficiency and greater product selection.

"This financial crisis is actually helping us in a way because people still have to buy and buyers tend to switch to e-commerce at a time like this," CEO David Wei told reporters.

He said he did not expect significant revenue growth in the short term, but added: "We remain cautiously optimistic and are committed to executing our investment and strategic initiatives to drive customer penetration and retention because we believe that leads to long-term and sustainable growth in revenue and profit."

China's economy has begun showing signs that the government's massive fiscal and monetary stimulus measures to fight the global financial crisis may be working, with the Purchasing Managers' Index (PMI) in April inching above the growth indicator of 50, the first time since July 2008. [ID:nPEK78002]
"In our view, Alibaba may benefit from the potential recovery of China's exports as it produces 60 percent of total sales from Chinese exporters," said Morgan Stanley in a recent report.

SHRINKING MARGINS

Alibaba also moved to address concerns over narrowing margins since it lowered its membership fees for exporters by 60 percent in 2008 to attract more traders.

On Tuesday, Alibaba announced it would raise the fee for international members five-fold, effective June 15, in return for an upgraded package of services, although international members account for only 2 percent of the company's revenue.

"Due to our voluntary investments in customers, people and technology innovation, we expect our full-year margin will be significantly lower than that of 2008," Wei said in an accompanying statement.

Customer net additions for the quarter reached a record 49,544, bringing the number of paying members to 481,575, up 47 percent from a year earlier.

The global e-trade website operator earned 253.4 million yuan ($37.14 million) in the three months ended March, down from a profit of 300.7 million yuan a year earlier, but up from 199.4 million yuan in the last three months of 2008.

The earnings result beat an average net profit forecast of 213.85 million yuan by four analysts polled by Reuters.

In March, Alibaba projected its profit margins would shrink in 2009 as the company picks up the pace of investment, including marketing, staff hiring and a new data centre.

Shares in Alibaba rose nearly 1 percent to close at HK$10.24 on Wednesday, ahead of the results. The stock gained 27.6 percent in the first quarter of 2009 in contrast to a 5.6 percent fall in Hong Kong's benchmark Hang Seng Index .HSI in the same period.

[winston]

China's Alibaba says may pay dividend if no M&A

HONG KONG, May 7 (Reuters) - China's top e-commerce company Alibaba (1688.HK) said on Thursday it might consider distributing a dividend to shareholders from its ample cash stockpile if it cannot conclude an acquisition deal with any suitable candidate.

"The board of directors has already put the dividend issue on the agenda and will consider this seriously ... it won't need to wait too long," Founder and Chairman Jack Ma told reporters. He did not give a timeframe.

Hong Kong-listed Alibaba shares, which surged 27.6 percent in the first quarter of 2009, jumped as much as 15.4 percent to HK$11.82 after Ma's comment on Thursday, the highest since June 23, 2008. The stock closed at HK$11.70, up 14.65 percent.

"The company has ample cash and if it doesn't find a suitable acquisition candidate -- I don't think there's a feasible acquisition target at the moment -- then Alibaba can distribute the cash," said Kevin Tam, analyst at Everbright Securities.

"Alibaba's business is directly related to the global economic trends and with signs that the global economy is improving and the Chinese economy is improving, plus with such an impressive membership growth, market sentiment should really turn positive."

Alibaba has cash on hand of 6.9 billion yuan (US$1 billion), including the US$400 million proceeds raised from its IPO in late 2007, according to CEO David Wei.

Wei said the parent's US$1.3 billion cash, raised from the sale of Alibaba's stake via the IPO, has mostly been untouched.

It is also studying opportunities to acquire e-commerce platforms, applications and related technology, Wei added.

YAHOO STAKE SALE

On market talk that key investor Yahoo (YHOO.O) may sell a stake in Alibaba, Ma said he had not received any notice about the share sale but would respect the decision of its investors.

Yahoo holds about 40 percent of Alibaba Group and has an investment of more than 1 percent in the listed firm.

Ma also said the parent company had no plans to seek a separate listing for its e-commerce retail website Taobao, the largest in China, or merge its operations with the listed firm.

Transactions conducted through Taobao totalled 99.9 billion yuan in 2008, up 131 percent from year-on-year. [ID:nCN0485517].

Hong Kong-listed Alibaba posted a sharp drop in first-quarter net profit, although it beat the average forecast, as higher expenses on development and obtaining users ate into margins.

Net income declined nearly 16 percent as a result of investments in customers, people and technology, it said.

Alibaba, which connects millions of registered small-business buyers and sellers of Chinese products online, said registered users topped 40 million, as more buyers moved their sourcing online for higher efficiency and greater product selection.

[winston]

Ma upbeat on Alibaba profit

Alibaba.com (1688) chairman Jack Ma Yun said he is confident the firm's net profit will start growing again by next year.

First-quarter profit dropped, partly after prices were cut to attract 50,000 long-term customers to China's biggest e-commerce trading portal. The move cost Alibaba 50 million yuan (HK$56.81 million). "We think it was worth doing in terms of our long-term growth plans." Ma said in Hong Kong yesterday.

The company is evaluating foreign firms whose business does not overlap Alibaba's, said chief executive David Wei, and it has 1 billion yuan cash ready for possible acquisitions. Alibaba will consider raising dividends if it does not find suitable acquisition targets, Wei said.

Ma said if Yahoo Inc wants to offload part of its 39 percent stake in Alibaba Group, his firm is open to buying it back. Alibaba Group holds around 70 percent of Alibaba.com.

Ma said there are no plans yet to spin off Alipay, the group's online payment unit, or Taobao.com, an online trading site for individuals. CLSA upgraded Alibaba to "outperform" from "sell."

Alibaba shares closed 14.65 percent higher at HK$11.74 yesterday after the company said it is placing a dividend payout on the agenda after failing to distribute a final dividend last year.

Alibaba on Tuesday posted a smaller- than-expected drop in first-quarter profit.

KATHY WANG, The Standard HK

[winston]

What the Heck Is Alibaba? By Marc Charles, ETR

Alibaba.com is the largest and most successful import/export marketplace for entrepreneurs in the world. It boasts more than 24 million members in 200 countries. And it facilitates more than $5 billion in import/export transactions each year - everything from sleeping bags to cement mixers.

This makes importing a viable way for you to generate extra income on the side or as a full-time venture.

Through the Alibaba website, you can meet qualified suppliers (manufacturers and other sellers) and reach agreements on pricing, delivery, insurance, and even storage (if necessary). Then you can re-sell their products online.

And you don't even need a website. All you have to do is list your products in the online marketplace - on high-traffic sites like eBay, Amazon, MSN Shopping, and Yahoo! Stores. You can customize your listings to make them really stand out. What's more, you can feature your products on the front pages of these sites for a small fee.

One of the best ways to start making money with Alibaba is to focus on importing products that have the greatest demand. And the fastest way to find out which products are in demand is by reviewing Alibaba.com.

With some products, there are minimum order requirements, so you may need to purchase them in bulk. Even so, you can start out fairly small and grow from there.

[kennynah]

[winston]

DJ MARKET TALK: Alibaba.com 2Q Net Profit Likely Down 42% - Poll

1443 [Dow Jones] PREVIEW: Alibaba.com (1688.HK) 2Q net profit likely down 42% at CNY228.3 million (from CNY396.5 million a year earlier), according to five analysts polled by Dow Jones Newswires. Results due Thursday after market close.

Analysts expect 2Q net profit to fall due to higher marketing costs and increased spending on infrastructure, technology. Alibaba declared 2009 as "a year of investment;" company has been pushed to increase its subscribers.

Credit Suisse analyst Wallace Cheung expects China's export markets to experience gradual recovery in terms of export volume, positive for Alibaba's growth. "Alibaba.com has been developing its own search technology and is transforming itself into a vertical search engine. We expect paid search to be a growth driver for Alibaba.com in the longer run," says Cheung.

[winston]

Alibaba Profit Beats Estimates on Gain in Customers (Update2)
By Mark Lee and Tim Culpan

Aug. 13 (Bloomberg) -- Alibaba.com Ltd., operator of China’s biggest trading Web site, reported second-quarter profit that beat analysts’ estimates as an increase in customers helped compensate for higher marketing expenses.

Net income declined 34 percent to 260.7 million yuan ($38 million) from 396.5 million yuan a year earlier, Hangzhou, east China-based Alibaba said today. Profit was projected at 215 million yuan, according to the median of three analysts’ estimates in a Bloomberg News survey.

Alibaba added one million users in each of the past three quarters, Chief Executive Officer David Wei said, after the company stepped up marketing of its portal overseas to bolster demand for the clothes and electronics listed on the Web site by Chinese exporters amid the global recession. The site also attracted more businesses seeking to offer their products to Chinese buyers as a $586 billion government stimulus helps boost domestic consumption in the world’s third-biggest economy.

“Management has responded to the economic slowdown, and has come up with steps to maintain revenue growth,” said Tsz Wang Tam, who rates Alibaba shares “buy” at Kim Eng Securities in Hong Kong. “Higher marketing expenses will put pressure on margins, but will help promote long-term growth.”

Alibaba rose 7.6 percent to close at HK$19.88 in Hong Kong trading today before the earnings announcement. The stock has more than tripled this year, compared with a 45 percent gain in the city’s benchmark Hang Seng Index.

‘Investment Opportunities’

“In the last few months we have been exploring investment opportunities, and we are relatively close to making some announcements in the coming months,” Wei said in a conference call today. The investments aren’t “global targets” and are outside Taiwan, he said, without elaborating.

Alibaba has more than 6 billion yuan following the payout of what Wei described as the largest-ever dividend for a Chinese Internet company. The Web site operator has “reserved enough cash” to complete the planned investments, Wei said.

Almost 50,000 paying members were added in the second quarter, boosting the total to 531,471 at the end of June, Alibaba said. Sales and marketing expenses jumped 57 percent to 378.1 million yuan, according to the statement.

Profit in the second quarter fell 17 percent after excluding the one-time impact of gains from exchange-rate fluctuations and the sale of a stake in its Japan operations in the year earlier period, the company said in a statement.

[kennynah]

[winston]

Sure, no need to worry. Chairman Sale is non-event

DJ MARKET TALK: Alibaba Chairman's Share Sale A Nonevent -CLSA

1106 [Dow Jones] Alibaba.com (1688.HK) down 4.6% at HK$20.65 after chairman Jack Ma sold 13 million shares at HK$20.78 each for HK$270 million after market close Tuesday.

"It's normal for Internet companies' executives to sell down shares because most of their salaries are from the share options," says Elinor Leung, analyst at CLSA; "Ma's disposal doesn't mean the company's valuation is high or the business outlook is not good." Leung says Alibaba is a turnaround story in short term as its operations are improving along with global economic recovery. Keeps Buy with target HK$24.00.