Jinwu Financial News | BOCOM INTL released a research report indicating that Alibaba (09988) announced on December 17 that it would sell 100% of the equity of Intime to a buyer consortium formed by Youngor Group and members of the Intime management team. The total proceeds from this sale amount to 7.4 billion yuan (approximately 1 billion USD), with an anticipated loss of 9.3 billion yuan (approximately 1.3 billion USD) from this sale.

The bank indicated that this sale would have an impact on Alibaba's earnings reports as a one-time accounting loss, with revenue impact <1%. The company's strategic transformation focuses on 1) e-commerce through Taotian and B2B as major core platforms; 2) Alibaba Cloud as a technology-driven base that supports AI development. The bank believes there may still be some business adjustments in the future, but this is also a necessary path for the achievement of the group's long-term strategic goals.

The bank continued to indicate that Alibaba's current price corresponds to a PE of 10.4 times/9.7 times for the calendar years 2024/25, corresponding to the bank's forecasted adjusted net income growth rate of 8% for the calendar year 2025. The bank still maintains its previous view, suggesting to pay attention to the possibility of accelerated revenue and profit improvement driven by the recovery of GMV in Alibaba's core e-commerce business and the increase in monetization rate. Maintaining a Buy rating.