Yuanta Securities sees Alibaba earnings recovery, supported by Cloud, target 2.92 baht per DR

Analyst
โดย HoonVision·CN·Read original
Summary · why it matters

Yuanta Securities stated that ALIBABA GROUP HOLDING LIMITED, or DR BABA19, will report earnings on 20 August and expects short-term speculative buying, as JD.Com's results reflect a clear easing of competition in the food delivery industry, which supports profit margins. Meanwhile, Alibaba is also supported by high-growth Cloud business. Bloomberg Consensus expects profit to contract year-on-year because of some remaining impact from price competition, but low market expectations reduce the risk of earnings coming in below forecasts. The company recently reached an agreement to sell its stake in Lingxi Games, a gaming business, and is expected to receive more than 2 billion dollars in cash, which is positive because the money will be invested in expanding existing businesses with greater potential such as AI, Cloud or E-Commerce. The current price trades at only 18 times 2026 PER, and Bloomberg Consensus values the target price at 2.92 baht per DR, implying upside of around 40%.

Impact on stocks 2

Artificial Intelligence · 1 stocks
Alibaba Group Holding Ltd
9988
▲ PositiveCapitalrelevance

Analyst report expects earnings recovery, cloud growth, and sale of Lingxi Games for $2B cash.

Consumer Discretionary · 1 stocks
Jd Com Inc
9618
▲ PositiveCompetitionrelevance

JD.com's results reflect easing competition in food delivery, supporting margins.

Theme Impact 2

Off-coverage companies 1

Lingxi GamesPrivate± Mixed
Capitalrelevance

Alibaba sells stake in Lingxi Games, but impact on Lingxi itself not detailed.

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