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<Research>CMBI Adds Alibaba TP to US$133.8, Estimates 2FQ Non-GAAP NP to Fall 8% to RMB36.8B
Recommend 32 Positive 49 Negative 10 |
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BABA-W (09988.HK) is estimated to report revenue of RMB238.3 billion in 2QFY25, up 6% YoY, and non-GAAP net profit of RMB36.8 billion, down 8%, both in line with consensus, CMBI said in a report. The group-level adjusted EBITA fell 6% YoY to RMB40.4 billion, implying an adjusted EBITA margin of 17%, vs 19.1% in the same period last year. Even with tapering consumer sentiment, Alibaba’s management remains committed to investing in improving the user experience for its core 88VIP user base, which should bode well for retaining market share, and lay a solid foundation for long-term monetization improvements. Alibaba's monetization improved faster than expected in 2QFY25, thanks to better-than-expected merchant adoption, and should ramp up more briskly with further rise in merchant penetration and with potential improvement in consumer sentiment. As for Alibaba's international business development, the recovery of Alibaba Cloud's business, and the narrowing of losses in non-core businesses, they are all on track. CMBI maintained its Buy rating on Alibaba (BABA.US) and raised its target price from US$126.9 to US$133.8. It expected the group's stable and predictable shareholder return plan and the incremental capital inflow from southbound investors after the inclusion of Hong Kong Stock Connect to support the valuation. AAStocks Financial News |
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