Ge Long Hui·2025-05-20 01:40Core Insights - Alibaba reported total revenue of 236.45 billion RMB for FY2025 Q4, representing a year-on-year growth of 7% [1] - Non-GAAP net profit for the quarter was approximately 30 billion RMB, up 18% year-on-year [1] Business Segment Performance - Taobao and Tmall Group generated 101.4 billion RMB in revenue, a 9% increase year-on-year, with adjusted EBITA of approximately 41.7 billion RMB, up 8% [1] - International commerce recorded 33.6 billion RMB in revenue, a 22% year-on-year increase, with adjusted EBITA narrowing to -3.6 billion RMB, a 13% improvement [1] - Alibaba Cloud achieved 30.1 billion RMB in revenue, an 18% year-on-year growth, with adjusted EBITA of approximately 2.4 billion RMB, up 69% [1][2] - Cainiao reported 21.6 billion RMB in revenue, a 12% decline year-on-year, with adjusted EBITA narrowing to -600 million RMB, a 55% improvement [1] - Local services generated 16.1 billion RMB in revenue, a 10% increase year-on-year, with adjusted EBITA of approximately -2.3 billion RMB, narrowing by 28% [1] - Digital entertainment recorded 5.55 billion RMB in revenue, a 12% increase year-on-year, with adjusted EBITA turning positive, primarily driven by profitability from Youku [1] Strategic Focus and Future Outlook - The company emphasized a commitment to user growth and merchant experience, with customer management revenue (CMR) increasing by 12% to approximately 71.1 billion RMB, driven by an increase in take rate [2] - Alibaba Cloud's revenue growth is expected to continue accelerating, with AI product demand remaining strong, achieving triple-digit year-on-year growth for seven consecutive quarters [2] - Capital expenditure for the quarter was approximately 24.6 billion RMB, reflecting the company's ongoing investment in AI technology and product development [2] - The company aims to focus on core businesses and drive AI and cloud as new long-term growth engines [2] Valuation and Rating - The company maintains a "Buy" rating, projecting revenues of 1,118.5 billion RMB, 1,236.0 billion RMB, and 1,355.1 billion RMB for the fiscal years 2026-2028, with non-GAAP net profits of 161.3 billion RMB, 184.5 billion RMB, and 208.1 billion RMB respectively [3] - The target price is set at 164 HKD for Hong Kong stocks and 168 USD for US stocks, based on a 10x P/E for core e-commerce, 30x P/E for Alibaba Cloud, and 1x P/S for other businesses [3]