Citi expects Alibaba's GMV growth to accelerate again.
The Zhitong Finance App learned that Citi released a research report stating that the target prices for Alibaba-SW (09988) Hong Kong stocks and US stocks were lowered by 0.75% to 1.5%, from HK$133 to HK$132, respectively; from US$135 to US$133, respectively. The investment rating remains “buy.” As of the third fiscal quarter ending at the end of December this year, the bank expects the company's GMV growth to accelerate again. In addition to benefiting from the above reasons, it can also fully reflect the contribution of charging basic software service fees, which will only be partially offset by new business and reinvestment.
According to the report, Alibaba's results for the second fiscal quarter ended at the end of September were in line with expectations, and adjusted net profit and EBITA slightly beat the forecast. Customer management revenue (CMR) increased 2.5% year-on-year during the quarter, and the conversion rate was stable, reflecting a slowdown in total commodity transaction volume (GMV) growth. However, management showed strong performance in the “Double 11" business and was optimistic about potential stimulus policies. Coupled with the Group's reaffirmation of reinvestment in Taotian Group, international and cloud businesses, it was confirmed that the loss ratio of related sectors was improving, and the profitability of other businesses was improving.
