Alibaba reported 2Q FY3/22 revenue of Rmb201bn, up 29% yoy. Excluding the consolidation of Sun Art, revenue growth was 16% yoy, below our expectation, mainly because of weak CMR growth in the China marketplace. However, Cloud and international business achieved strong revenue growth of 33% and 34% yoy, respectively, in 2Q FY3/22, and the Cloud business continued to achieve positive EBITA. We expect Alibaba’s new initiatives, such as Taobao Deal, Cloud, international business, Cainiao logistics and local retail business, to bear fruit in the future. Reiterate Add with a new DCF-based TP of HK$207.