Oct 7, Griglett| Daiwa issued a report stating that after the recent rise in Alibaba's (9988.HK) stock price, its forecasted future one-year pe growth rate is 0.7 standard deviations higher than the three-year average, but still 0.5 standard deviations lower than the five-year average. The bank believes that Alibaba still has significant valuation revaluation space, with the current valuation equivalent to a forecasted pe of 12.6 times, lower than the five-year average of 15.6 times. Even though the revenue growth rate for the fiscal years 2025 to 2026 will be slower than in the fiscal year 2022, the bank believes that Alibaba's valuation will stabilize in fiscal year 2025 and release more shareholder value aggressively than two to three years ago. In addition, Daiwa stated that the company is increasing efforts to monetize the core customer relationship management (CMR) through new advertising products and software service fees, narrowing the gap between CMR and platform gross merchandise volume (GMV), and driving profit margins up. If the mainland fiscal stimulus takes effect from 2025, Alibaba's profit forecast for the fiscal year ending in March 2026 is expected to have upside potential. Alibaba's H shares target price is raised from HK$98 to HK$146, with a buy rating.