BABA(US:BABA) BOCOM International·2025-06-24 08:55Investment Rating - The report assigns a "Buy" rating for Alibaba, Meituan, and JD.com, indicating a positive outlook for these companies in the internet sector [5]. Core Insights - The internet industry is witnessing a trend where platforms are integrating resources to enhance user experience and expand into large consumer markets. Alibaba is transitioning from an e-commerce platform to a comprehensive lifestyle consumption platform, while Meituan is focusing on instant retail and local life services [1][5]. - Alibaba's Taobao has significantly increased its investment in instant retail, achieving over 6 million daily orders by June 23, 2025, with a notable 75% of these being non-beverage orders. This strategy aims to enhance user stickiness and overall conversion rates across the platform [1]. - Meituan is adjusting its strategy by exiting loss-making areas and concentrating on instant retail and local services, with projected growth in order volume and revenue for the second quarter of 2025 [1]. Summary by Sections Business Updates - Recent announcements from major internet platforms include JD.com's entry into the OTA market and Alibaba's integration of Ele.me and Fliggy into its e-commerce division. Meituan is expanding its instant retail offerings and exploring new business models [1]. Financial Projections - The report estimates Alibaba's profit for the fiscal year 2026 to exceed 200 billion RMB, while Meituan's local business profit is expected to remain stable compared to 2024. Meituan's revenue growth is projected at 7% for instant retail and 10% for local business [1][5]. Market Positioning - The report highlights that Alibaba and Meituan are effectively leveraging resource integration to focus on key business areas, which is expected to drive efficient expansion. The market share for Meituan in the food delivery sector is anticipated to maintain a ratio of 6:3 against Ele.me [1].