CICC Expects BABA 2FQ Rev. to Gain 9% YoY; Core E-commerce/ Cloud Computing Pending Recovery
CICC issued a research report saying that revenue of $BABA-SW(09988.HK$ in 2FQ24 is expected to rise 9% YoY to RMB225.4 billion, slightly lower than the market expectation, mainly due to the performance of Alibaba e-commerce affected by the moderate recovery of the industry.
CICC also estimated that adjusted EBITA will increase by 16% YoY to RMB41.9 billion, mainly due to effective expense control. CICC also pointed out that core e-commerce and cloud computing were pending recovery.
CICC said that it lowered the Group's revenue forecasts for each of FY2024 and FY2025 by 1% to RMB959.2 billion and RMB1.0503 trillion respectively, mainly due to Taobao and Tmall Group's weaker-than-expected revenue.
Meanwhile, CICC also lowered the Company's non-GAAP net profit attributable to parent company by 2% to RMB177.6 billion for FY2024, and 1% to RMB200.6 billion for FY2025, mainly due to higher-than-expected losses from new businesses.
CICC said that it is optimistic about Alibaba's organizational adjustments overlapping with the dividend and buyback catalyst. CICC kept its target price at $137 and rating at Outperform.
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