Tianfeng Securities released a research report stating that maintaining the Alibaba-SW (09988) “buy” rating, based on the company's emphasis on continuing to increase investment to enhance competitiveness, the revenue for the 2024-2026 fiscal year is expected to be about 938.2 billion yuan, 1.03 trillion yuan, and 1.13 trillion yuan, respectively, up 8%, 9%, and 10% from the previous year; during the period, net profit was 159.4 billion yuan, 168.3 billion yuan, and 179.5 billion yuan respectively, up 13%, 6%, and 7% year on year.
According to the report, the company recently withdrew Cainiao's IPO application and plans to acquire Cainiao's employees' and minority shareholders' shares for 3.75 billion US dollars. Currently, Alibaba Group owns about 63.7% of Cainiao's fully diluted shares. The bank believes that this will facilitate strategic collaboration between Taotian Group and Ali International Digital Commerce Group.
The bank said that Ali's revenue for the third quarter of fiscal year 2024 increased 5% year-on-year, which is basically in line with expectations; adjusted EBITA rose 2% to 52,843 billion yuan, which is also in line with expectations. By the end of March 2027, the share repurchase plan increased by $25 billion. There is still a $35.3 billion repurchase limit for the next three fiscal years.