Shenwan Hongyuan Securities·2025-09-25 13:52Investment Rating - The report maintains a "Buy" rating for Alibaba (BABA) [3][10][20] Core Insights - Alibaba is increasing its investment in AI, aiming for Artificial Superintelligence (ASI) as the ultimate goal [2][10] - The company plans to invest 380 billion RMB over three years to build AI infrastructure, with a significant increase in computing power [10] - Alibaba's flagship AI model, Qwen3-Max, has surpassed competitors in performance and is ranked among the top three globally [10] - The company is positioning itself as a full-stack AI service provider, integrating advanced AI capabilities and cloud computing [10] - The target price for Alibaba's stock is set at $228, indicating a potential upside of 29% from the current price [10] Financial Data and Earnings Forecast - Projected revenues for FY24 to FY28 are as follows: 941,168 million RMB, 996,347 million RMB, 1,044,735 million RMB, 1,142,224 million RMB, and 1,228,165 million RMB, respectively [11] - Non-GAAP net profit forecasts for the same period are: 158,359 million RMB, 158,393 million RMB, 125,474 million RMB, 155,319 million RMB, and 178,793 million RMB [11] - The report anticipates a steady growth in revenue, with a projected growth rate of 8.3% for FY24 and a gradual decline to 4.9% by FY26 [11]