CitigroupThe published research report stated that althoughAlibaba(9988. HK) The overall revenue was worse than expected, while the growth of cloud services and customer management revenue slowed down, but the adjusted EBITA and net profit were better than expected. The company's revenue guidance for fiscal year 2022 and the direction of reinvesting profits in new businesses remain unchanged. Citigroup has a positive view on Ali's expansion of the repurchase plan to US $15 billion, which means that the management is confident in the long-term growth prospects and also reflects Ali's strong cash flow production capacity.. The bank believes that the company's focus on multi-App strategy is more prudent because the industry is gradually shifting to a decentralized model as consumers change. Citigroup lowered Ali's target price from HK $297 to HK $288 and maintained a buy rating. It believes that the company can once again prove that its operating experience can help cope with the impact of a tightening regulatory environment and slowing industry growth.The bank pointed out that the performance indicators of new investment mainly lie in users, order growth, user experience and delivery rate, etc., and the progress in community group buying is also steady. The GMV and GFA (distribution center construction area) of community business platforms increased by 200% and 260% quarter-on-quarter respectively. Ele.me and Lazada orders increased by more than 50% and 90% year-on-year respectively. The management pointed out that its investment strategy has shifted from a single application to a multi-App strategy, and expects to gradually increase its user base and revenue through new apps.
In addition, the management welcomes the potential cross-platform opening and strengthening connectivity, and believes that it will have a positive effect on reducing merchant operating costs and improve user experience. Ali reiterated that the company will not use data or calculus to maximize advertising monetization in compliance with mainland privacy regulations.
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