BABA(09988) 光大证券·2025-01-02 07:44Investment Rating - Maintains a "Buy" rating for the company [3][20] Core Views - The company is focusing on its core business and divesting non-core assets, such as the sale of its entire stake in Sun Art Retail for up to HKD 13.138 billion [1][2] - The sale of Sun Art Retail is expected to result in a loss of approximately RMB 13.177 billion for shareholders [2] - The company is expected to continue divesting non-core assets to focus on its core business, as evidenced by the sale of Intime Department Store for RMB 7.4 billion [8] - The company's Taotian business maintains a leading position, and its cloud business is showing signs of recovery [19] Financial Performance - Revenue is projected to grow from RMB 8,687 billion in FY2023 to RMB 11,809 billion in FY2027, with a CAGR of 7.36% [4] - Net profit attributable to ordinary shareholders is expected to increase from RMB 72,509 million in FY2023 to RMB 106,855 million in FY2027, with a CAGR of 5.54% [4] - Non-GAAP net profit is forecasted to grow from RMB 141,379 million in FY2023 to RMB 184,324 million in FY2027, with a CAGR of 8.99% [4] - The company's gross margin is expected to remain stable at 39% from FY2025 to FY2027 [24] Asset Divestment - The company sold its entire stake in Sun Art Retail, which accounted for 78.7% of the issued shares, with 73.66% indirectly held by Alibaba and 5.04% held by New Retail [17] - The sale of Sun Art Retail is part of the company's strategy to focus on core businesses and divest non-core assets [18] Market Data - The company's total market capitalization is HKD 1,570.093 billion, with a total share capital of 19.055 billion shares [21] - The stock's 1-year low and high prices are HKD 64.6 and HKD 118.70, respectively [21] Profitability and Valuation Metrics - The company's ROE (diluted) is expected to increase from 7.33% in FY2023 to 8.31% in FY2026 before slightly declining to 7.94% in FY2027 [24] - EPS (GAAP) is projected to grow from RMB 3.42 in FY2023 to RMB 5.61 in FY2027 [24] - The company's debt-to-asset ratio is expected to remain stable at around 36% from FY2023 to FY2027 [24]