2024-11-19 02:29Investment Rating - The report maintains a "Buy" rating for Alibaba, indicating a strong expectation for the company's performance relative to the market [3][12]. Core Insights - Alibaba reported a revenue of RMB 236.5 billion for Q2 FY25, reflecting a year-on-year growth of 5%. Adjusted EBITA decreased by 5% to RMB 40.6 billion, while non-GAAP net profit fell by 9% to RMB 36.5 billion, aligning with market expectations [3][6]. - The growth in Taotian's GMV is driven by increased purchase frequency and strategic investments in pricing, services, and membership benefits, leading to a significant rise in high-value user subscriptions [3][7]. - The international business segment showed robust growth, with revenue from the international digital commerce group increasing by 29% year-on-year to RMB 31.7 billion, and international retail commerce growing by 35% to RMB 25.6 billion [3][10]. - The Cloud Intelligence segment continues to accelerate, with revenue growth of 7% year-on-year to RMB 29.6 billion, and AI-related product revenue achieving triple-digit growth for five consecutive quarters [3][10]. - Share buybacks are ongoing, with Alibaba repurchasing 414 million shares for a total of USD 4.1 billion in Q3 FY24, enhancing shareholder returns [3][11]. Financial Data and Profit Forecast - For FY25E, Alibaba's revenue is projected to reach RMB 1,001.2 billion, with a year-on-year growth rate of 6.4%. Non-GAAP net profit is expected to be RMB 151.3 billion, reflecting a decline of 4.5% compared to the previous year [4][16]. - The adjusted EBITA for FY25E is forecasted at RMB 161.9 billion, with a steady increase in operating efficiency anticipated in the coming years [4][16].