Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company's revenue for Q1 2025 reached 95.672 billion yuan, a year-on-year increase of 10.2%, while GAAP net profit decreased by 47.3% to 14.742 billion yuan [1] - The decline in profit is attributed to increased costs from platform investments and uncertainties in overseas tariffs, leading to a downward revision of profit forecasts for 2025, 2026, and 2027 by 34%, 37%, and 41% respectively [4] Summary by Sections Financial Performance - In Q1 2025, the company's gross margin was 57.2%, down 5.1 percentage points year-on-year, primarily due to ongoing overseas expansion and investments to maintain platform competitiveness [2] - Sales expense ratio increased by 7.9 percentage points to 34.9% due to higher promotional expenditures [2] Revenue Streams - Online marketing service revenue grew by 15% year-on-year to 48.722 billion yuan, while commission revenue increased by 6% to 46.950 billion yuan [3] - The company has implemented measures to support merchants and optimize the platform ecosystem, including the establishment of a "Merchant Rights Protection Committee" and a "Billion Support" strategy [3] Profit Forecasts and Valuation - The report provides a detailed profit forecast, with expected revenues of 437.712 billion yuan in 2025, reflecting an 11% growth rate [5] - GAAP net profit is projected to be 91.006 billion yuan in 2025, indicating a decline of 19% compared to the previous year [5]

Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company's revenue for Q1 2025 increased by 10.2% year-on-year, while GAAP net profit decreased by 47.3% [1] - The decline in profit is attributed to increased costs from platform investments and uncertainties in overseas tariffs [4] - The company is focusing on enhancing platform competitiveness and supporting merchants through various initiatives [3] Revenue and Profitability - Q1 2025 revenue reached 956.72 billion yuan, with a GAAP net profit of 147.42 billion yuan [1] - The company's gross margin for Q1 2025 was 57.2%, down 5.1 percentage points year-on-year, primarily due to overseas expansion and increased promotional spending [2] - Online marketing service revenue grew by 15% year-on-year, while commission revenue increased by 6% [3] Cost Structure - Sales expense ratio increased by 7.9 percentage points to 34.9% in Q1 2025, driven by higher promotional expenditures [2] - Management expense ratio decreased slightly to 1.7%, reflecting improved overall efficiency [2] Future Earnings Forecast - The earnings forecast for GAAP net profit has been revised down by 34%/37%/41% for 2025/2026/2027 to 910.06/1002.16/1082.33 billion yuan [4] - Revenue projections for 2025 are estimated at 437.71 billion yuan, with a growth rate of 11% [5] Valuation Metrics - The report provides a P/E ratio of 11 for 2025 and a P/B ratio of 2.4 [5][13] - The expected EPS for 2025 is 16.03 yuan [5]