Amazon(US:AMZN) Huaan Securities·2025-08-06 05:48Investment Rating - The investment rating for the company is "Buy" (maintained) [3] Core Views - In Q2 2025, the company reported revenues of $167.7 billion, a year-on-year increase of 13.3%, exceeding Bloomberg consensus expectations by 3.43% [6] - Operating income reached $19.2 billion, up 30.7% year-on-year, also surpassing Bloomberg consensus by 12.74% [6] - GAAP net income was $18.2 billion, reflecting a 34.7% year-on-year increase, exceeding Bloomberg expectations by 27.28% [6] Business Performance Summary 1) Overall Performance: - For Q2 2025, the company achieved revenues of $167.7 billion, a 13.3% increase year-on-year, and operating income of $19.2 billion, a 30.7% increase year-on-year [6] - GAAP net income was $18.2 billion, a 34.7% increase year-on-year [6] 2) Segment Performance: - Online store revenues were $61.5 billion, up 11.0% year-on-year [7] - Physical store revenues reached $5.6 billion, a 7.5% increase year-on-year [7] - Third-party retail revenues were $40.3 billion, up 11.5% year-on-year [7] - Subscription revenues were $12.2 billion, a 12.4% increase year-on-year [7] - Advertising revenues were $15.7 billion, reflecting a 22.9% year-on-year increase [7] - AWS revenues were $30.9 billion, a 17.5% increase year-on-year [7] 3) AWS Performance: - AWS revenue growth of 17.5% was in line with expectations, but operating profit margin (OPM) declined to 32.9%, down 6.6 percentage points from the previous quarter [8] - Capital expenditures (CapEx) reached a record $31.4 billion, with full-year CapEx expected to be around $110-120 billion [8] 4) Retail Business Improvement: - Retail OPM improved, with North America up 1.2 percentage points to 7.5% and international up 1.1 percentage points to 4.1% [8] - The advertising business is accelerating growth, further optimizing retail profit margins [8] 5) Profit Guidance: - The company expects Q3 2025 revenues of $174-179.5 billion, a year-on-year increase of 10% to 13% [8] - Operating income guidance for Q3 2025 is $15.5-20.5 billion, with the midpoint below previous expectations [8] Financial Projections - Revenue projections for 2025-2027 are $708.7 billion, $788.3 billion, and $875.5 billion, respectively, with year-on-year growth rates of 11.1% [9] - Net profit projections for the same period are $76.8 billion, $85.1 billion, and $97.4 billion, with year-on-year growth rates of 29.6%, 10.8%, and 14.5% respectively [9]