Alibaba (BABA)/ 9988 HK; Jack Ma 04 (Dec 23 - Dec 26)

by **winston** » Mon Sep 01, 2025 7:41 am

vested

Alibaba misses revenue estimates but AI boosts cloud business

China's Alibaba (9988), missed market estimates for quarterly revenue on Friday as the company's e-commerce business grappled with tough competition and choppy consumer demand, eclipsing gains in its cloud computing business.

Consumer confidence in China has taken a beating from an economy weighed down by a lingering property sector crisis, weak wage growth and global trade disruptions.

Consumers remained cautious even as e-commerce companies resorted to steep discounts and price cuts to drum up demand.

That eclipsed strong growth in Alibaba's cloud segment, where revenue surged 26 percent to 33.40 billion yuan (HK$36.39 billion) against 18 percent growth seen in the prior quarter. Analysts were expecting an 18.4 percent rise to 31.44 billion yuan, according to LSEG data.

Alibaba has been among the most aggressive players in China's AI sector, unveiling upgrades on an almost weekly basis, most recently rolling out a model that converts portrait photos into lifelike video avatars.

The company reported total revenue of 247.65 billion yuan in the first quarter ended June, compared with an estimate of 252.92 billion yuan compiled by LSEG.

This is the first time Alibaba has reported revenue from its China E-commerce group, which includes platforms Taobao and Tmall, its new instant commerce business, food delivery app Ele.me and travel agency Fliggy. The group reported 10 percent growth in revenue.

Alibaba's income from operations decreased 3 percent on the year, and adjusted earnings before interest, tax and amortisation fell 14 percent due largely to investments in the instant commerce business.

Alibaba has also invested in improving its international business's foothold in key markets like Europe and the Middle East. The international unit reported a 20% rise in revenue to 6.5 billion yuan.

Alibaba also announced on Friday it had bought back shares in its Cainiao logistics arm from Fosun International (0656) for US$349.8 million.

Source: REUTERS

https://www.thestandard.com.hk/market/article/310321/

by **winston** » Mon Sep 01, 2025 8:49 am

vested

Alibaba Group (9988 HK)

1QFY26: Better-than-expected CMR And Cloud Revenue Growth;

Encouraging Quick Commerce Outlook

Alibaba reported strong 1QFY26 results. Revenue grew 2% yoy to Rmb247.7b, in line with the street’s estimate.

Non-GAAP net profit was Rmb33.5b, down 18% yoy, in line with our forecast, with net margin of 14.8%, due to its investment in Taobao Instant Commerce.

In the coming quarters, management expects to see:
a) solid CMR growth as the company leverages on the Rmb30t addressable market, and
b) strong cloud growth fuelled by AIrelated demand.

Maintain BUY with a higher target price of HK$170.00 (US$170.00).

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

by **winston** » Mon Sep 01, 2025 2:50 pm

by **winston** » Mon Sep 01, 2025 3:05 pm

not vested

Earnings first take: 1QFY3/26 result: Strong cloud and food delivery outlook compensates for earnings miss

1QFY3/26 non-GAAP net profit declined by 18% y/y, 14% below consensus, due to higher subsidy and marketing expenses for food delivery business, yet largely expected by market after Meituan’s result miss

Cloud revenue grew 26% y/y, 4% above consensus; capex surge to RMB38.6bn (+57% q/q) alleviated concerns on chip shortage, and management guided cloud revenue growth to further accelerate in upcoming quarters

Management expects food delivery’s unit economics to improve meaningfully over next few months after its scale reaching a critical mass, and the incremental user traffic will continue to support ~10% CMR growth y/y;

Maintain BUY on strong cloud growth prospect, TP under review

Source: DBS

https://www.dbs.com/insightsdirect/comp ... ecid=27732

by **winston** » Tue Sep 02, 2025 10:48 am

not vested

Positive guidance on quick commerce

Alibaba’s 1QFY3/26 revenue grew 2% yoy to Rmb247.6bn, largely in line; excluding the disposal of Intime and Sun Art, revenue grew 10% yoy.

Its non-GAAP net profit was down by 18% yoy to Rmb33.5bn, below our expectation, due to the increase in food delivery subsidy.

We estimate Alibaba incurred Rmb11bn loss for its quick commerce unit in 1QFY3/26; we expect this to double in 2QFY3/26F.

We expect FY3/26F revenue to increase 1.5% and non-GAAP net profit to drop 24.5%, with food delivery unit’s economy loss down by half in Sep/Oct vs. Aug 2025.

We reiterate our Add rating with a slightly lower DCF-based TP of HK$152.

Source: CGS

https://rfs.cgsi.com/api/download?file= ... 44388928A1

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