CICC Report: Taobao Live Targets High Growth, Boosts Investment

CICC's report highlights Taobao Live's ambitious growth targets for FY2025, with a significant investment of RMB10 billion to fuel expansion. The platform aims to double its average daily purchasing users year-on-year.

With Taobao Live's GMV surpassing RMB500 billion in FY2021, achieving the projected user growth could substantially drive Taobao Tmall Group's GMV in FY2025. This strategic move underscores BABA-SW's commitment to user-centric transformation.

CICC acknowledges the debate over the efficiency of content-based traffic but views Taobao Live's continued investment in content as integral to its user-centered e-commerce strategy.

Maintaining revenue and profit forecasts for $BABA-SW(09988.HK)$, CICC predicts robust performance, with a revenue forecast of RMB1.1053 trillion and a non-GAAP net profit of RMB196.2 billion for FY2026. The target price for H shares remains at HK$109, with an Outperform rating.