EBSCN·2024-08-16 08:03Investment Rating - The report maintains a "Buy" rating for Alibaba-SW (9988.HK) [2][9] Core Insights - In Q1 FY2025, Alibaba's overall gross margin increased by 0.72 percentage points, while the operating expense ratio rose by 5.40 percentage points [1][21] - The company repurchased a total of 613 million shares for $5.8 billion in Q1 FY2025, and $12.5 billion for 1.249 billion shares in FY2024 [1] - The report highlights strong growth in AI-related revenues, with a three-digit percentage increase, and a high single-digit growth in GMV for Taotian [1][7][21] Financial Performance Summary - Q1 FY2025 revenue reached 243.24 billion yuan, a year-on-year increase of 3.88%, while net profit attributable to ordinary shareholders decreased by 29.31% to 24.27 billion yuan [6][21] - The forecast for revenue growth is as follows: FY2023 at 868.7 billion yuan, FY2024 at 941.2 billion yuan, FY2025E at 1,017.3 billion yuan, FY2026E at 1,089.1 billion yuan, and FY2027E at 1,159.5 billion yuan [3][31] - The net profit attributable to ordinary shareholders is projected to be 72.5 billion yuan for FY2025, 79.7 billion yuan for FY2026, and 94.6 billion yuan for FY2027 [3][31] Business Segment Performance - Taotian Group launched a new AI-driven marketing tool in April 2024, contributing to high single-digit growth in GMV and double-digit growth in order volume in Q1 FY2025 [21] - The AI-related product revenue from the Cloud Intelligence Group saw a three-digit percentage increase, with a significant rise in paid users of Alibaba Cloud's AI platform [21] - The International Digital Commerce Group established a partnership with Brazilian retailer Magalu, showing improvement in the Choice business [21]