The company's 1QFY2023 revenue decreased by 0.09% compared with the same period last year, and the net profit attributed to common shareholders decreased by 49.63% year on year. On August 4, the company announced that 1QFY2023 realized operating income of 205.555 billion yuan, a decrease of 0.09% over the same period last year, and operating income performance slightly exceeded market expectations (market expectation of 203.231 billion yuan). Net profit attributable to common shareholders was 22.739 billion yuan, corresponding to basic EPS of 1.07 yuan. The year-on-year decrease of 49.63%, the realization of non-GAAP net profit of 30.252 billion yuan, a decrease of 30.36% over the same period last year, mainly due to the decline in adjusted EBITA and the decline in investment profit and loss calculated by the equity method. The investment loss calculated by the equity method of 1QFY2023 was 3.48 billion yuan, while that of 1QFY2022 was 6.093 billion yuan. (if this article does not specifically refer to US dollars or Hong Kong dollars, both yuan refer to RMB)
The company's 1QFY2023 comprehensive gross profit margin fell 2.76 pct, while the expense rate rose 0.24 pct1QFY2023. The company's comprehensive gross profit margin was 36.92%, down 2.76% from the same period last year. The decrease in gross profit margin is mainly due to: 1) the increase in the proportion of direct business (such as Box Horse and Tmall supermarket), as well as the growth of Alibaba Health Information Technology's direct business; 2) the growth of Cainiao's domestic business leads to an increase in logistics cost as a percentage of income. at the same time, it is partly offset by the decrease in per unit logistics cost of ele.me.
The expense rate of 1QFY2023 during the period was 24.06%, an increase of 0.24% over the same period last year. Among them, the sales / management / finance / R & D expense rates were 12.44%, 4.10%, 0.61%, 6.90%, respectively, and the year-on-year changes were-0.70 / + 0.62%, 0.01%, 0.33%, respectively.
With continued share buybacks, there is still an unused quota of $12 billion. 1QFY2023 repurchased approximately 38.6 million American depositary shares (equivalent to approximately 308.7 million common shares) for approximately $3.5 billion. As of June 30, 2022, the company's outstanding common shares were approximately 21.2 billion shares (equivalent to approximately 2.6 billion American depositary shares). According to the company's $25 billion repurchase plan released on March 22, 2022, the plan is valid until the end of March 2024 and still has an unused quota of $12 billion as of June 30, 2022.
Maintain profit forecast and maintain "overweight" rating
The company's performance slightly exceeded expectations and the performance was relatively robust, but in view of the uncertainty of the controlled process of the epidemic and the macroeconomic environment, we maintain the forecast of the net profit of the company's FY2023/ FY2024/ FY2025 attributable to common shareholders of 675.60 million 793.64 billion. The company's e-commerce leading position is relatively stable, users have a high retention rate and loyalty, maintain the "overweight" rating.
Risk hint: the development of new business is not as expected, the competition in the industry is intensified, and the process of epidemic control is not as expected.