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BOCI Projects BABA-W 1FQ Profit at RMB28.7B, 15% Above Consensus
2026-07-10 13:49:24
BOCI expected BABA-W (09988.HK) to post total revenue growth of 9% YoY for 1QFY27 ended June, in line with market consensus, while group profit was estimated at RMB28.7 billion, 15% above market expectations. The broker estimated core CMR revenue to decline 7% YoY. Cloud revenue was projected to continue accelerating, rising 45% YoY. The group's adjusted EBITA was forecast at RMB25.6 billion, implying a margin of 9.5%.

BOCI believed cloud can sustain accelerating YoY growth over the coming quarters amid robust industry demand, bolstered by multiple clear growth drivers, and achieve various short-, medium- and long-term targets. The broker also expected that recent decisive organizational restructuring, enhanced resource utilization efficiency and improved investment conversion rates will better realize the company's steadfast AI and consumer vision.

The broker maintained a Buy rating on Alibaba Group Holding Limited (BABA.US), with an unchanged US SOTP TP of USD187 and H-share TP of HKD182 for BABA-W (09988.HK).
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