深耕主业，加大投入

Investment Rating - The report maintains a "Buy" rating for Alibaba Group [24][25]. Core Views - The report highlights a gradual recovery in e-commerce, with a focus on a "user-first" strategy. Retail sales in China grew by 4.7% year-on-year in Q1 2024, with online retail sales of physical goods increasing by 11.6% [5]. - Alibaba Cloud is expected to achieve healthy growth in public cloud services, despite recent price reductions across its product lines [6][23]. - The report anticipates strong growth in AIDC, Cainiao, and local services, although increased investments may lead to wider adjusted EBITA losses [7][23]. Financial Summary - Revenue projections for Alibaba are as follows: FY2024E at 939,104 million, FY2025E at 996,102 million, and FY2026E at 1,068,502 million, with growth rates of 8%, 6%, and 7% respectively [11][24]. - Non-GAAP net profit estimates are 156,298 million for FY2024E, 153,723 million for FY2025E, and 164,822 million for FY2026E, with growth rates of 9%, -2%, and 7% respectively [11][24]. - The report projects a non-GAAP EPS of 7.69 for FY2024E, 7.85 for FY2025E, and 8.75 for FY2026E [11][24]. Strategic Developments - On March 26, Alibaba announced plans to acquire minority stakes in Cainiao for $3.75 billion and withdrew its IPO application, indicating a strategic focus on core business integration [8][24]. - The report emphasizes that Alibaba's strategy will concentrate on enhancing core businesses and increasing investments in domestic and international e-commerce and cloud computing, which may pressure short-term profit growth [23][24].