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<Research>BOCI Reaffirms Buy on BABA-W with H-Share TP HK$146
BABA-W (09988.HK) delivered a 12% YoY growth in CMR for the quarter ending March, topping market and the broker's expectations, on the back of improved take rate from software ...
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<Research>BOCI Reaffirms Buy on BABA-W with H-Share TP HK$146
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BABA-W (09988.HK)  +3.100 (+2.601%)    Short selling $508.52M; Ratio 11.514%   delivered a 12% YoY growth in CMR for the quarter ending March, topping market and the broker's expectations, on the back of improved take rate from software service charge and accelerating Quan Zhan Tui penetration; and AI cloud business growing 18% YoY, in line with the broker's expectations, as BOCI noted in its report.

Alibaba reiterated its capex plans for AI and cloud business over the next three years, pampered by strong demand for diversified chips in Mainland China. The broker reaffirmed its Buy rating on Alibaba, but cut Alibaba's (BABA.US)      target price from USD151 to USD150, corresponding to an H-share target price of HKD146, factoring in higher supply chain uncertainties leading to a downward revision in growth forecasts.

Related NewsBofA Expects BABA-W's Cloud Rev. Growth to Accelerate in Coming Quarters, Reaffirms Buy Rating
Regarding the mid-term outlook, the broker assumed Alibaba's e-commerce business take rate will further heighten, based on the service fee implemented since last September, the low base of service fees, and the broader application of Quan Zhan Tui, which will further enhance merchant marketing efficiency. Harnessing continued investment in users and merchants, the company's 88VIP membership realized double-digit growth during the quarter, reaching 50 million members.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-05-20 12:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

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