bingoshowdownfreeticketsdaily| [Broker Focus] Bank of China cut Alibaba's (BABA) target price by 5.3%, indicating that the effectiveness of business adjustment has clearer visibility

Jinwu Caixun| Bank of China International Research Report pointed out that Alibaba (BABA) announced the results of its 4QFY 24 financial report (year-end in March)bingoshowdownfreeticketsdaily: Total revenue was RMB 221.9 billion, a year-on-year increase of 6.6 billionbingoshowdownfreeticketsdaily.6%, non-GAAP net profit for the next quarter was 25.3 billion yuan, a year-on-year decrease of 9.4%. The main reason was investment to promote user experience improvement and GMV growth in domestic businesses, as well as support international business expansion. Alibaba's total revenue for the whole year of FY24 reached RMB 941.2 billion, a year-on-year increase of 8.3%, and net profit under non-GAAP was RMB 158.4 billion, a year-on-year increase of 10%.

Management emphasized that it has made solid progress in supporting investment in core business market share growth. Taotian Group's GMV achieved double-digit year-on-year growth in the quarter, international commercial retail revenue increased by 56% year-on-year, and artificial intelligence-related cloud revenue increased year-on-year in 4QFY 24. It increased by three digits and accelerated month-on-month. Investment related to management guidance to promote market share growth in core businesses remains an important matter.

The bank believes that the increase in shareholder returns may provide support for valuations, while the incremental positive news on core business development in the second half of fiscal year 25 may boost market confidence. The bank rolled forward its valuation to fiscal year 25, with a new SOTP target price of $124.9 (previous value: $131.9). Maintain the "Buy" rating.

Tags:

Prev: SafariSpinSafari| Guangzhou City's high-quality development plan for digital economy: support banks, securities, insurance, futures, funds and other financial formats in Guangzhou to accelerate the digital transformation process
Next: avetsx5.3mc| China Southern Airlines: Passenger turnover increased by 19.79% year-on-year in April