Jingu Financial News | First Shanghai's research report indicates that the current e-commerce market in china faces significant uncertainty and intense competition. This quarter, alibaba (09988) is focused on enhancing user experience, acquiring user growth and retention through product pricing power and customer service, and introducing incentives and efficiency-enhancing marketing tools for merchants. Although there are uncertainties in the short term, it will help strengthen the company's market share and monetization level in the long run. At the same time, alibaba cloud, as a leading cloud provider in the country, will lead the demand related to AI. Additionally, the company is placing greater emphasis on reducing losses in its businesses and continuously enhancing company value through active share buybacks, with circulating shares having already decreased by 4.4% this fiscal year.

The firm expects revenues for FY2025 to FY2027 to be 1003.4/1091.4/1205.5 billion yuan, with operating profits of 147.8/153.9/173.7 billion yuan, and diluted eps of 6.9/7.2/8.2 USD. Using the segmented valuation method, the target price is determined to be 112.00 USD / 109.00 HKD, with a buy rating.