EBSCN·2024-09-05 06:11Investment Rating - The report maintains a "Buy" rating for Alibaba Group (9988.HK) [2][18] Core Insights - Alibaba's Taobao and Tmall plan to add WeChat Pay capabilities to enhance consumer shopping experience, aligning with the trend of internet interoperability [1][10][16] - The company has successfully completed a three-year rectification process, achieving good results as announced by the State Administration for Market Regulation [1] - The addition of WeChat Pay is expected to improve the platform ecosystem and consumer experience, with profit forecasts for FY2025, FY2026, and FY2027 set at 854.49 billion, 907.02 billion, and 945.62 billion RMB respectively [16] Financial Summary - Revenue projections for Alibaba are as follows: - FY2023: 868.7 billion RMB - FY2024: 941.2 billion RMB - FY2025E: 1,017.3 billion RMB - FY2026E: 1,089.1 billion RMB - FY2027E: 1,159.5 billion RMB [6][17] - Net profit attributable to ordinary shareholders is projected to grow from 725 million RMB in FY2025 to 946 million RMB in FY2027, with growth rates of 6.80%, 6.15%, and 4.26% respectively [17][22] - The company’s gross margin is expected to remain stable, with a slight increase from 36.72% in FY2023 to 37.60% in FY2027 [22]