Ge Long Hui·2025-09-02 02:46Core Viewpoint - The company has demonstrated strong performance in both of its major business lines this quarter, with AI cloud driving accelerated growth in cloud services and record-high CAPEX investments. The food delivery business has manageable losses while contributing positively to the main platform's synergy [1] Group 1: AI and Cloud Business - In FY26Q1, the company achieved cloud revenue of 334.0 billion, a year-over-year increase of 25.8% and a quarter-over-quarter increase of 8.1 percentage points, indicating significant acceleration [2] - AI cloud revenue accounted for over 20% of external revenue, with AI revenue growing at triple digits for eight consecutive quarters, suggesting a peak in domestic AI demand [2] - The company’s capital expenditure reached 387.6 billion, a year-over-year increase of 219.8%, reflecting a strong commitment to its AI strategy [2] - The cloud EBITA margin was 8.8%, up 0.8 percentage points quarter-over-quarter, indicating improved profitability despite increased CAPEX [2] Group 2: E-commerce and Food Delivery - In FY26Q1, the company reported CMR of 892.5 billion, a year-over-year increase of 10.1%, driven by commission adjustments and AI-driven improvements in site penetration [3] - The total loss from food delivery subsidies was estimated to be no more than 150 billion, which did not significantly impact overall group profits [3] - Monthly active users for the food delivery service exceeded 300 million, with weekly orders maintaining above 80 million, indicating a narrowing gap with competitors [3] - The food delivery business has shown a positive synergy effect on the main platform, with increased traffic and advertising revenue contributing to overall growth [3] Group 3: Strategic Focus and Future Outlook - The company is strategically focusing on the dual opportunities presented by instant retail and AI, merging various business units into a unified e-commerce group [1] - Future revenue projections for FY2026-2028 are adjusted to 10049/11256/12129 billion, with net profit estimates of 1405/1866/2091 billion [4] - The estimated market value of the company is 34,772 billion, corresponding to a target price of 200.00 HKD per share, maintaining a "buy" rating [4]