Zhi Tong Cai Jing·2025-10-02 01:58Core Viewpoint - The report from Dongfang Securities highlights Alibaba-W's (09988) rapid advancements in AI technology and strong commitment to an "All in AI" strategy, reinforcing its leading position in large language models and showing significant progress in multimodal models [1] Group 1: AI Strategy and Model Development - Alibaba has strengthened its AI strategic position and increased investment, leading to improved penetration rates in both business and consumer segments due to its leading model technology and open-source strategy [1] - The company’s open-source strategy has resulted in noticeable growth in its model ecosystem and user penetration [1] Group 2: Revenue and Profit Forecasts - Dongfang Securities has raised its revenue growth expectations for Alibaba Cloud, forecasting operating revenues for FY2026-2028 to be 1008.4 billion, 1138.1 billion, and 1248.2 billion yuan, respectively, up from previous estimates of 1004.9 billion, 1125.6 billion, and 1212.9 billion yuan [1] - Adjusted net profit forecasts for FY2026-2028 are now projected at 141.2 billion, 187.8 billion, and 216.6 billion yuan, an increase from earlier estimates of 140.5 billion, 186.6 billion, and 209.1 billion yuan, driven by accelerated AI revenue growth enhancing profit margins [1] Group 3: Investment Rating - The target price for Alibaba Cloud has been set at 205.34 HKD, with a maintained "Buy" rating, reflecting confidence in the company's sustained leadership in AI cloud and model capabilities [1]