Jinwu Financial News | According to the First Shanghai Development Research Report, the Chinese e-commerce market is currently facing a lot of uncertainty and a fierce competitive environment. This quarter, Alibaba (09988) focused on improving the user experience, obtaining user growth and retention through product price and customer service, and introduced concessions and marketing tools to improve efficiency for merchants. Despite short-term uncertainty, the long term will help strengthen the company's market share and level of monetization. At the same time, Alibaba Cloud, as a leading domestic cloud vendor, will lead AI-related demand. In addition, the company paid more attention to reducing losses in loss-making businesses and continuously increasing the company's value through active repurchases. The number of tradable shares has been reduced by 4.4% this fiscal year.
The bank expects FY's operating income from 2025 to 2027 to be 1003.4/1091.4/1205.5 billion yuan, operating profit of 147.8/153.9/173.7 billion yuan, and diluted earnings per share of 6.9/7.2/8.2 billion. Using the segmented valuation method, a target price of 112.00 USD/HK$109.00 was obtained, and the purchase rating was obtained.
