CMBI highlighted in a report that BABA-SW (09988.HK) -2.950 (-3.569%) Short selling $1.05B; Ratio 11.908% (BABA.US) achieved a 6.6% YoY growth in revenue for 4FQ24 ended in March this year. Increased investment during the period helped drive improved user experience, GMV growth in domestic business and expansion of international business. Taobao Tmall Group achieved double-digit YoY growth in GMV, international commerce retail revenue hiked 56%, while AI-related cloud business revenue soared by triple digits.
The broker expected BABA's top priority for FY25 will continue to be investing to increase market share in its core businesses, and expected higher shareholder returns to provide some support to the valuation. A favourable outlook for core business development in 2FH25 will help boost investor confidence.
Based on the latest valuation expectation, CMBI lowered its target price on BABA's US ADR from US$131.9 to US$124.9, while maintaining its Buy rating.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-05-16 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)
