BABA(09988) 民生证券·2024-11-17 07:25Investment Rating - The report maintains a "Buy" rating for Alibaba Group (9988.HK) [3] Core Views - Alibaba's revenue for FY25Q2 reached 236.5 billion RMB, a year-over-year increase of 5.2%, while GAAP net profit was 43.5 billion RMB, reflecting a year-over-year decrease of 9.1% [1] - The report highlights marginal improvement in Taobao's Customer Management Revenue (CMR) growth, driven by an increase in Gross Merchandise Volume (GMV) [2] - Cloud business revenue grew by 7.1% year-over-year, with a notable increase in AI-related product revenue [2] - The report emphasizes the potential for Alibaba's CMR business to stabilize and grow, alongside significant growth prospects in the cloud business driven by AI [2] Summary by Sections Financial Performance - Taobao's FY25Q2 revenue was 99.9 billion RMB, up 1.4% year-over-year, with retail revenue at 93.0 billion RMB, a 0.5% increase [2] - The adjusted EBITA for Taobao was 44.6 billion RMB, down 5.3% year-over-year, with a profit margin of 45.0% [2] - Cloud business revenue for FY25Q2 was 29.6 billion RMB, with an adjusted EBITA of 2.7 billion RMB, reflecting an 88.9% year-over-year increase [2] Shareholder Returns - The company repurchased 4.14 million shares for 41 billion USD in the quarter, with a total repurchase of 87 billion USD in the first half of the fiscal year [2] Future Projections - The report forecasts adjusted EPS for FY2025, FY2026, and FY2027 to be 7.63 RMB, 8.58 RMB, and 9.42 RMB respectively, with corresponding adjusted PE ratios of 11, 9, and 9 times [2]