Tianfeng Securities·2025-09-05 07:14Investment Rating - The investment rating for Alibaba-W (09988) is "Buy" with a target price set above the current price of HKD 129.8, indicating an expected relative return of over 20% within the next six months [5][13]. Core Insights - The report highlights that Alibaba's cloud business continues to maintain high growth, with revenue exceeding Bloomberg consensus expectations. The company is also investing significantly in artificial intelligence-related products, which have shown consistent triple-digit year-over-year growth for eight consecutive quarters [4][3]. - The Chinese e-commerce group's revenue for FY26Q1 reached CNY 1,401 billion, surpassing Bloomberg consensus by 15%. The report notes that the introduction of "Taobao Instant Retail" has led to significant user engagement and order volume growth [2][4]. - The AIDC segment reported a revenue increase of 19% year-over-year, driven by strong cross-border business performance and improved operational efficiency [3][4]. Summary by Sections Financial Performance - For FY26Q1, Alibaba reported total revenue of CNY 2,477 billion, with adjusted EBITA of CNY 388 billion and adjusted net profit of CNY 353 billion. Capital expenditures for the quarter were CNY 386 billion, exceeding Bloomberg consensus expectations [1][4]. Chinese E-commerce Group - The Chinese e-commerce group's revenue was CNY 1,401 billion, with an adjusted EBITA of CNY 384 billion, reflecting a year-over-year decline of CNY 104 billion. The "Taobao Instant Retail" service has significantly boosted user engagement, with peak daily order volumes reaching 120 million in August [2][4]. Cloud Intelligence Group - The Cloud Intelligence Group generated revenue of CNY 334 billion, with an adjusted EBITA of CNY 30 billion, marking a year-over-year increase of CNY 6 billion. The growth was primarily driven by public cloud services and increasing adoption of AI-related products [3][4]. Shareholder Returns - The company repurchased 56 million shares for a total of USD 815 million during the quarter. As of June 30, 2025, the remaining authorized amount for the stock repurchase plan is USD 19.3 billion [4].