Ge Long Hui·2025-10-09 09:22Group 1 - The core viewpoint of the report is that Alibaba's (9988.HK) stock is currently trading at 30 and 21 times the FY26 and FY27 non-GAAP P/E ratios in the Hong Kong and US markets respectively [1] - The revenue forecast for FY26 has been lowered by 1% to 106.15 billion yuan, while the FY27 revenue forecast remains largely unchanged, primarily due to lower-than-expected AIDC and flash purchase revenues [1] - The non-GAAP net profit estimates for FY26 and FY27 have been reduced by 17% and 4% to 10.12 billion yuan and 14.38 billion yuan respectively, mainly due to increased losses in flash purchases and other businesses [1] Group 2 - The report employs a Sum-of-the-Parts (SOTP) valuation, assigning a 15x P/E to the e-commerce business and a 7x P/S to the cloud computing business for FY27 [1] - The target prices for the US and Hong Kong stocks are maintained at $204 and 197 HKD, respectively, indicating an upside potential of 11% and 13% compared to current stock prices [1] - The industry rating remains at "outperform" [1]