Equity Analysis /
Hong Kong

HK : Alibaba Group - Looking at the long-term horizon

    Lei Yang
    Lei Yang

    Research Analyst

    Hang XU
    20 November 2021
    Published by

    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.