Tianfeng Securities released a research report stating that due to Alibaba-SW (09988) emphasizing continuous investment to enhance competitiveness, the bank raised its revenue forecast for the fiscal year 2025 to 2027 to RMB 1.0249 trillion, RMB 1.1236 trillion, and RMB 1.2193 trillion, respectively; Non-GAAP net income forecast was raised to RMB 156.5 billion, RMB 162.2 billion, and RMB 164.7 billion, and the rating remained 'buy.'
The report pointed out that it is expected that Alibaba's first quarter revenue for the fiscal year 2025 will be RMB 248.8 billion, a year-on-year increase of 6.2%; EBITA adjusted to a year-on-year decrease of 10.8% to RMB 40.5 billion; EBITA profit margin is 16.3%; non-GAAP net profit year-on-year decrease of 6% to RMB 42.1 billion.
The Bank predicts that in Alibaba's first fiscal quarter, revenue of Taotian Group will increase by 2.8% YoY; cloud business revenue will increase by 4.8% YoY; international business revenue will increase by 34.7% YoY; local life revenue will increase by 11.1% YoY. It is expected that Cainiao's revenue will increase by 28.1% YoY, and the revenue of the Alibaba Pictures Group will fall by 5%.
In the Q4 FY2024 earnings report, Alibaba disclosed the progress of voluntarily converting into a dual primary listing on the Hong Kong Stock Exchange and stated that it is preparing for the primary listing in Hong Kong, expected to complete the conversion by the end of August this year.