According to a report published by UBS, Taobo's profit for the 2024 fiscal year was weaker than expected. Net profit for the second half of the fiscal year ending at the end of February this year increased 27% year-on-year, 7% lower than the bank's forecast. The reason was that revenue, gross margin, and operating expenses did not meet expectations, but were partially offset by lower tax rates. Due to the high base effect from January to February, revenue for the second half of the 2024 fiscal year increased 7% year-on-year, 3% lower than the bank's forecast.
According to UBS, the earnings forecast per share for the 2024-2027 fiscal year was lowered by 3% to 4% due to lower earnings expectations and recent weak sales trends. The bank reduced its target price from HK$7.5 to HK$7.3, with a “buy” rating. Furthermore, the report cites the company's guidance for fiscal year 2025 that sales are expected to increase year by year.