Considering the reinvestment in Taotian Group (TTG) and the increased availability of Alibaba International Digital Business Group (AIDC), Furi will be able to meet the overall EBITA expectations.
Furi maintained its "buy" rating on Alibaba-SW (09988) in a research report, with a target price raised to HK$112 from HK$110.
The company will strive to achieve its three-year plan, and the growth of users, orders, and commodity transaction volume (GMV) is the key to the first phase. Comprehensive marketing solutions, WXT, and other products should help drive revenue growth in the second half of the 2025 fiscal year. The bank maintains its forecast for customer management revenue (CMR) growth. Considering the reinvestment in Taotian Group (TTG) and the increased availability of Alibaba International Digital Business Group (AIDC), it is expected that the overall EBITA will meet expectations.
The bank expects revenue for Alibaba International Digital Business Group (AIDC) to increase by 35% year-on-year as of the end of June, and revenue for cloud intelligence business to increase by 4% to CNY 26.1 billion (same below), with overall EBITA expected to decline by about 9% to about CNY 41 billion and the overall EBITA profit margin expected to decline by about 3 percentage points to about 16.4%.