It's still the same$Alibaba(BABA)$
We don't think that the financial report this time is negative, the overall income growth is deterministic, and the progress of many businesses has exceeded expectations. In general, after a fairly long bottom, the $58 lower limit and the current 75 Around the US dollar has formed a relatively stable fluctuation range of Ali, and this bottom range has been clarified. When the macro economy has a good signal, the possibility of upward breakthrough will become greater.
Looking at the business and data: In general, Ali's financial report is stable. The financial report shows that$Alibaba(09988)$
The company's operating cash flow reached 64.7 billion yuan this quarter, much higher than its net profit, showing the stability of the company's operating conditions. Looking at different businesses specifically, many of them have performed more than expected. The good news is that Taotian is still very stable, and the bad news is that Taotian is really too stable. In the financial report, Ali has clearly stated that it is currently in the stage of revitalizing Taotian Group and should prepare for future growth. The revenue of the entire Taotian Group increased by 2% year-on-year, and the adjusted EBITA was 60 billion yuan, a year-on-year increase of 1%, and achieved a benign GMV growth. In the face of the fierce competition of its opponents, it is quite good that Taotian can still produce such a transcript; however, from the perspective of the future, this part of the industry With the growth of services, it is still difficult for Ali to rely on his own strength, and he must rely on changes in the general environment, so that this part of the business can return to the high growth rate again.
International digital business is the fastest growing business in the entire Ali system, and of course the one that burns the most money. Revenue increased 44% year-on-year to 28.5 billion, and overall orders increased by 24% year-on-year. In terms of income, It should be the largest cross-border (overseas) e-commerce in China, and it is not easy to maintain such a growth rate. Of course, this business is also a fact of burning money. The adjusted EBITA of the international digital business business has a loss of 3.15 billion yuan, a year-on-year expansion of about 2.5 billion yuan; it is worth mentioning that the entire Ali's net profit after excluding one-time items such as equity incentives and goodwill impairment is 480 100 million yuan, which is just about 2 billion yuan down from last year. It can be said that the expansion of the expansion of international digital business is the main reason for the reduction of Ali's net profit. In the face of fierce competition, it is no problem to burn money.
The sales expenses of the entire Ali increased by 3 billion yuan to about 33.8 billion yuan in the third quarter, and I am afraid that a considerable part of the increase is spent overseas. It can also be seen from the expenditure in this regard that Ali did not let go of the desire to grow, and the attitude towards competition is also quite positive. Finally, let's talk about the local life business, which is also one of the business segments that Ali has encountered the most rumors. The receivables of this segment increased by 13% to 15.16 billion yuan, mainly driven by the rapid growth of Ele.me and AutoNavi, with an increase of 20% year-on-year orders, and the annual growth rate of purchase frequency is also quite strong.
Affected by this, the adjusted EBITA loss of this branch was 2.07 billion yuan, a significant loss of nearly 900 million yuan year-on-year. In any way, Ali has no reason to sell Ele.me. Originally, the competition barriers of the takeaway business are difficult to be eroded, and it can be seen from the offensive that Douyin has had a bad thunder on Meituan's takeaway in the past year; In addition, companies or businesses related to offline consumption are gradually returning to growth. In any case, it is difficult for Ali to give up this business. In general, this financial report has exceeded expectations, and some places are not satisfactory. Reflected in the capital market, it is the value revaluation that Ali is currently experiencing.
As for how to judge the value of Ali, the coordinate system of the entire market has been changing, and the long grinding bottom is actually coming to an end.
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