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BOCI Keeps Buy on BABA-W; Heavy Investment for Mid-to-Long-Term Goals
2026-03-20 12:57:19
BABA-W (09988.HK)'s 3QFY26 total revenue grew by 2% YoY, while its adjusted EBITA reached RMB23.4 billion, 2% and 25% below market expectations, respectively, according to BOCI's research report.

Specifically, BABA-W's core China e-commerce CMR edged up 1% YoY, instant sale e-commerce revenue surged by 56% YoY, and cloud revenue continued to accelerate with a 36% YoY increase.

BOCI also highlighted BABA-W's commitment to ramping up investment to achieve its mid-to-long-term goals for its AI, cloud, and instant sale businesses: 1) the external cloud business revenue scale will exceed over USD100 billion by FY2031 (with a projected CAGR of over 40% in the next five years); and 2) the instant sale business will record a GMV of over RMB1 trillion by FY2028 and achieve profitability by FY2029.

BOCI has kept a Buy rating and a target price of HKD182 for BABA-W.
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