Ge Long Hui·2025-11-27 19:44Core Insights - The company reported FY2026Q2 financial results with total revenue of 247.8 billion yuan, showing a year-over-year increase of 5% and a quarter-over-quarter increase of 0.1% [1] - Operating profit significantly decreased by 85% year-over-year and quarter-over-quarter, amounting to 5.4 billion yuan, while adjusted EBITDA fell by 64% year-over-year and 62% quarter-over-quarter to 17.3 billion yuan [1] - Net profit was reported at 20.6 billion yuan, down 53% year-over-year and 51% quarter-over-quarter, with Non-GAAP net profit at 10.4 billion yuan, reflecting a 72% year-over-year decline [1] E-commerce Performance - Traditional e-commerce remains stable, with the Chinese e-commerce group's revenue growing by 16% year-over-year to 132.6 billion yuan, and customer management revenue increasing by 10% [1] - Instant retail revenue surged by 60% year-over-year to 22.9 billion yuan, contributing to a total adjusted EBITDA of 10.5 billion yuan, although this reflects a 76% year-over-year decline [1] - The number of active consumers on the Taobao app increased significantly, with a core user group exceeding 56 million, showing double-digit year-over-year growth [1] International Digital Commerce - The international digital commerce segment achieved a revenue growth of 10% year-over-year to 34.8 billion yuan, with adjusted EBITDA of 200 million yuan, marking a return to profitability [2] - This improvement is attributed to enhanced operational efficiency in the AliExpress platform and overall business efficiency gains [2] Cloud Business Growth - The cloud intelligence group reported a revenue increase of 34% year-over-year to 39.8 billion yuan, with external cloud revenue growing by 29% [2] - AI-related revenue has shown triple-digit year-over-year growth for nine consecutive quarters, with adjusted EBITDA rising by 35% to 3.6 billion yuan [2] - Management remains optimistic about future capital expenditures, planning to invest 380 billion yuan over the next three years, with potential for additional investments based on customer demand [2] Profit Forecast and Valuation - The company adjusted its profit forecast, expecting revenues of 1,041.8 billion yuan, 1,160.5 billion yuan, and 1,282.1 billion yuan for FY2026-2028, with corresponding net profits of 125.1 billion yuan, 149.3 billion yuan, and 184.5 billion yuan [3] - The target market capitalization for FY2027 is set at 3,345.5 billion yuan, with a target price of 175 yuan per share, maintaining a "buy" rating [3]