Guoxin Securities·2024-02-28 16:00Investment Rating - The report maintains a "Buy" rating for the company [10][34][44] Core Insights - The company is experiencing stable revenue growth, with a 5% year-on-year increase to 260.3 billion yuan in Q3 FY2024. Key growth drivers include the International Digital Commerce Group, Local Life Group, Cainiao Group, and Digital Entertainment, while Taobao and cloud business growth remains flat [4][51] - The company has adjusted its revenue forecasts for FY2024 to FY2026 to 943.3 billion, 1,018 billion, and 1,097.8 billion yuan respectively, with minor adjustments of +0.2%, -1.6%, and -3.7% [44][35] - The company plans to continue investing in its core business while monetizing non-core assets, having exited 1.7 billion USD in non-core assets this fiscal year [6][41] Financial Performance - The company's Non-GAAP net profit for the quarter was 48 billion yuan, a 4% decrease year-on-year, with a Non-GAAP net profit margin of 18%. Adjusted EBITA increased by 2% to 52.8 billion yuan, with an adjusted EBITA margin improving by 6 percentage points [51][38] - Taobao's adjusted EBITA margin decreased from 47% to 46%, primarily due to continued user investment and a slight increase in sales expenses [8][51] - The cloud business revenue grew by 4% year-on-year to 28.1 billion yuan, with an adjusted EBITA margin rising from 5% to 8% [9][2] Shareholder Returns - The company repurchased 2.9 billion USD worth of shares in the December quarter, reducing the number of outstanding shares by 3.3%. A new share repurchase plan of 25 billion USD has been approved, effective until March 2027, with a remaining repurchase capacity of 35.3 billion USD over the next three fiscal years, representing 18% of the current market value [41][44]