New Street Research - Alibaba Group Holding Ltd. Sponsored ADR (A117ME) BABA FY4Q24 Preview: Margins Could Remain Under Pressure in the Near Term

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New Street Research

Jin Yoon

BABA FY4Q24 Preview: Margins Could Remain Under Pressure in the Near Term

What’s New: While Taobao and Tmall could continue to narrow the gap with the industry, margins could be under pressure in the near-term amid investments across each business segments to drive growth.

Analysts:
Jin Yoon

10/04/2024 1 EN

Underlying

Alibaba Group Holding Ltd. Sponsored ADR

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US01609W1027 Stuttgart Stock Exchange Cayman Islands

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New Street Research

Provided by our team of experienced analysts, our work is idea driven, based on independence of thought, sector expertise, and firmly focussed on fundamentals and valuation.

New Street Research is an independent, partner-owned, research firm specialising in equity and debt research. Our equity research embraces the following sectors:

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Pan European Telecom Services and Cable

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Analysts

Jin Yoon

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Alibaba Group (9988 HK): 4QFY24 preview: Solid CMR and AIDC growth; lacklustre profitability.

Alibaba saw solid consumption momentum in Jan-Feb 24 on its platform and slight moderation in March with its continuous focus on user needs. We expect revenue to grow 6% yoy for 4QFY24, fuelled by better CMR growth. For FY25, Alibaba will continue to focus on user experience and investment in AIDC to foster revenue growth amid a highly competitive environment. Maintain BUY with a lower target price of HK$92.00 (US$92.00).

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KEY HIGHLIGHTS Sector IT Hardware AI Hardware: Elevated investment to bolster investor confidence. Maintain OVERWEIGHT. Update Alibaba Group (9988 HK/BUY/HK$70.50/Target: HK$92.00) 4QFY24 preview: Solid CMR and AIDC growth; lacklustre profitability. TRADERS’ CORNER Guangzhou Automobile Group (2238 HK): Trading Buy range: HK$3.48-3.58 China Gas Holdings Limited (384 HK): Trading Buy range: HK$7.90-8.00

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Regional Morning Notes - Thursday, April 11, 2024

GREATER CHINA Sector IT Hardware: AI Hardware: Elevated investment to bolster investor confidence. Maintain OVERWEIGHT. Update Alibaba Group (9988 HK/BUY/HK$70.50/Target: HK$92.00): 4QFY24 preview: Solid CMR and AIDC growth; lacklustre profitability. SINGAPORE Update Marco Polo Marine (MPM SP/BUY/S$0.067/Target:S$0.086): Virtual call takeaways: Thriving on upswing in offshore industry. THAILAND Update Energy Absolute (EA TB/BUY/Bt35.25/Target: Bt70.00): Looking for new growth opportunities from EV trucks and green energy.

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Altice Model Update

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MELI US (Buy, TP: $1,800, +25%) Q1 24 - Argentina really is in the price now, Brazil and Mexico profitability well ahead

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ATUS: quick thoughts following the call

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BABA FY4Q24 Preview: Margins Could Remain Under Pressure in the Near Term

Alibaba Group (9988 HK): 4QFY24 preview: Solid CMR and AIDC growth; lacklustre profitability.

Greater China Daily: Thursday, April 11, 2024

Regional Morning Notes - Thursday, April 11, 2024

Altice Model Update

MELI US (Buy, TP: $1,800, +25%) Q1 24 - Argentina really is in the price now, Brazil and Mexico profitability well ahead

ATUS: quick thoughts following the call

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