BABA(09988) 光大证券·2024-11-18 01:24Investment Rating - The report maintains a "Buy" rating for Alibaba Group (9988.HK) [6][8]. Core Insights - In Q2 FY2025, the company reported a revenue increase of 5.21% year-on-year, with net profit attributable to ordinary shareholders rising by 58.36% [3][6]. - The company has a significant marketing investment, with 88VIP membership reaching 46 million, showing double-digit growth [5][6]. - The adjusted non-GAAP net profit forecast for FY2025 has been reduced by 5% to 155.1 billion yuan, while forecasts for FY2026 and FY2027 have been increased by 1% and 7% respectively [6]. Financial Performance Summary - For 1HFY2025, the company achieved a revenue of 479.739 billion yuan, a year-on-year increase of 4.53%, and a net profit of 68.143 billion yuan, up 9.84% [3]. - The comprehensive gross margin for 1HFY2025 was 39.52%, an increase of 0.97 percentage points year-on-year [4]. - The company repurchased 4.14 million shares for 4.1 billion USD, with 22 billion USD remaining under the buyback plan [5]. Profitability Metrics - The comprehensive gross margin for Q2 FY2025 was 39.10%, up 1.23 percentage points year-on-year [4]. - The period expense ratio for 1HFY2025 was 25.10%, an increase of 3.84 percentage points year-on-year [4]. - The company’s revenue projections for FY2025 to FY2027 are 1,011.7 billion yuan, 1,181.0 billion yuan, and 1,180.9 billion yuan respectively, with growth rates of 7.49%, 8.73%, and 7.36% [7][17].