智通财经网·2025-09-26 03:23Core Viewpoint - The report from China Merchants Securities International reaffirms Alibaba-W (09988) as the preferred stock in the Chinese internet sector, raising the target price by 25% from HKD 159 to HKD 198, indicating a potential upside of 14% [1] Group 1: Financial Projections - The company has increased its capital expenditure budget due to strong demand, leading to a 3% and 7% upward revision in cloud business revenue forecasts for the fiscal years 2026 and 2027, respectively, with expected year-on-year growth of 27% and 25% [1] - Profit margins are expected to remain stable despite the revenue growth [1] - For the fiscal years 2027 and 2028, revenue and core net profit forecasts have been adjusted upward by no more than 1% due to strong demand and ongoing AI product innovation [1] Group 2: Strategic Outlook - The firm maintains a positive outlook on Alibaba's robust execution capabilities and business synergies, positioning the company as a key beneficiary of AI advancements due to its comprehensive technology and product layout [1] - The rating of "Buy" is maintained based on these favorable conditions [1]