CitigroupPublished research reports indicate that althoughAlibaba(9988.HK) Overall revenue was weaker than expected, while cloud services and customer management revenue growth slowed, although adjusted EBITA and net profit were both better than expected. The company's revenue guidance for fiscal 2022 and the direction of reinvesting earnings in new businesses remain unchanged. Citi has a positive view on Alibaba's expansion of the repurchase plan to US$15 billion, which means that management is confident in the long-term growth prospects and also reflects Alibaba's strong cash flow production capacity. The bank believes that it is prudent for the company to focus on multi-APP strategy, because the industry is gradually turning to a decentralized model as consumers change. Citi lowered the target price of Ali from HK$297 to HK$288 and maintained a Buy rating, believing that the company can once again prove that its operating experience can help cope with the impact of tighter regulatory environment and slower industry growth.The bank pointed out that the performance indicators of the new investment mainly lie in users, order growth, user experience and delivery rate, etc., and the progress in community group buying is also steady. GMV and GFA (distribution center building area) of community business platform increased by 200% and 260% quarter-on-quarter, respectively, and orders of Ele.me and Lazada increased by more than 50% and 90% year-on-year, respectively. The management pointed out that its investment strategy has shifted from single application to multi-app strategy, and hopes to gradually increase the user base and revenue through new apps.
In addition, the management welcomed the potential cross-platform openness and enhanced connectivity, believing that it will have a positive effect on reducing merchant operating costs and improve user experience, and Alibaba reiterated that the company will comply with Mainland privacy regulations and will not use data or calculus to maximize advertising monetization.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments