External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

Alibaba Group Holding  / Equity Bottom-Up

<ul><li>Alibaba delivered inline 2QFY24 (March year-end) results: total revenue was RMB224.8bn, up 8.5% YoY, and non-GAAP net income for the quarter was RMB40.2bn, up 16.8% YoY.</li><li>Both revenue and non-GAAP net income in 2QFY24 were in line with Bloomberg consensus estimates.</li><li>Alibaba decided not to proceed with a full spin-off for Cloud Intelligence Group (CIG), and will focus on developing a sustainable growth model for CIG under current circumstances, but stressed that it remained committed to drive shareholder returns. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Alibaba delivered inline 2QFY24 (March year-end) results: total revenue was RMB224.8bn, up 8.5% YoY, and non-GAAP net income for the quarter was RMB40.2bn, up 16.8% YoY.Both revenue and non-GAAP net income in 2QFY24 were in line with Bloomberg consensus estimates.Alibaba decided not to proceed with a full spin-off for Cloud Intelligence Group (CIG), and will focus on developing a sustainable growth model for CIG under current circumstances, but stressed that it remained committed to drive shareholder returns. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Alibaba (BABA US) – Remain Committed to Enhance Shareholder Returns

Equity Analyst, LightStream Research

Oshadhi Kumarasiri

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<ul>
<li>While <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba (ADR) (BABA US)</a>'s 2Q24 revenue and OP closely matched consensus expectations, the company experienced a significant sell-off, resulting in shares plummeting by over 9% yesterday.</li>
<li>Yesterday's weak performance may be linked to a 10% pre-earnings price surge, anticipating robust results. The postponement of the Cloud Spin-off could also have contributed to the decline.</li>
<li>We maintain a bearish stance on <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd-d7b798e2-202d-4e01-9a1e-799e2ae8f0c7" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group Holding (9988 HK)</a> as we identify other fundamental and structural downside catalysts might become increasingly important and price-sensitive as time progresses.</li>
</ul>


While Alibaba (ADR) (BABA US)'s 2Q24 revenue and OP closely matched consensus expectations, the company experienced a significant sell-off, resulting in shares plummeting by over 9% yesterday.
Yesterday's weak performance may be linked to a 10% pre-earnings price surge, anticipating robust results. The postponement of the Cloud Spin-off could also have contributed to the decline.
We maintain a bearish stance on Alibaba Group Holding (9988 HK) as we identify other fundamental and structural downside catalysts might become increasingly important and price-sensitive as time progresses.


Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>Alibaba’s operating margin rose to 15% in 2Q24 versus 12% in 2Q23.</li>
<li>Every expense as percentage of total revenue decreased and EBITDA of every business line increased.</li>
<li>We believe the reorganization is going smoothly and the stock has an upside of 82%. Buy.</li>
</ul>


Alibaba’s operating margin rose to 15% in 2Q24 versus 12% in 2Q23.
Every expense as percentage of total revenue decreased and EBITDA of every business line increased.
We believe the reorganization is going smoothly and the stock has an upside of 82%. Buy.


Alibaba (9988 HK): 2Q24, Higher Margin Means Smooth Reorganization, Buy

<ul>
<li>We believe the financial recovery from 1Q24 will continue in 2Q24.</li>
<li>We expect the operating margin will improve to 15% in 2Q24 versus 12% in 2Q23.</li>
<li>Alibaba has an upside of 69% and the target will be HK$143 for the year end 2024. Buy.</li>
</ul>


We believe the financial recovery from 1Q24 will continue in 2Q24.
We expect the operating margin will improve to 15% in 2Q24 versus 12% in 2Q23.
Alibaba has an upside of 69% and the target will be HK$143 for the year end 2024. Buy.


Alibaba (9988 HK) 3Q24 Earnings Preview: Recovery to Continue, 67% Upside

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Event-Driven

<ul>
<li>With <a href="https://www.smartkarma.com/entities/toyota-motor-corp" target="_blank" data-smartkarma-citation="entities:73:1" rel="noopener">Toyota (7203 JP)</a> having sold some of its stake in <a href="https://www.smartkarma.com/entities/denso-corp" target="_blank" data-smartkarma-citation="entities:18703:1" rel="noopener">Denso</a>, <a href="https://www.smartkarma.com/entities/kddi-corp" target="_blank" data-smartkarma-citation="entities:639:1" rel="noopener">KDDI</a> and <a href="https://www.smartkarma.com/entities/harmonic-drive-systems-inc" target="_blank" data-smartkarma-citation="entities:10238:1" rel="noopener">Harmonic Drive</a> this year, it has firmly set the ball rolling for unwinding some of its cross-shareholding.</li>
<li>Toyota has a shareholding in around 60 listed companies, with its combined disposable stake worth over US$26bn.</li>
<li>In this note, we take a look at its stakes in various companies to see which ones could possibly be candidates for further selldowns.</li>
</ul>


With Toyota (7203 JP) having sold some of its stake in Denso, KDDI and Harmonic Drive this year, it has firmly set the ball rolling for unwinding some of its cross-shareholding.
Toyota has a shareholding in around 60 listed companies, with its combined disposable stake worth over US$26bn.
In this note, we take a look at its stakes in various companies to see which ones could possibly be candidates for further selldowns.


Toyota Cross-Shareholding - To Say a Whole Lot Is Left Would Be a US$26bn Understatement

China

Alibaba Group Holding Limited provides online sales services. The Company provides internet infrastructure, electronic commerce, online financial, and internet content services through its subsidiaries. Alibaba Group Holding offers its products and services worldwide.

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Alibaba Group Holding (BABA US)

Alibaba (BABA US) – Remain Committed to Enhance Shareholder Returns

Alibaba delivered inline 2QFY24 (March year-end) results: total revenue was RMB224.8bn, up 8.5% YoY, and non-GAAP net income for the quarter was...

CMB International

Alibaba: Our Take on 2QFY24

While Alibaba's 2Q24 revenue and OP closely matched consensus expectations, the company experienced a significant sell-off, resulting in shares...

Oshadhi Kumarasiri

Alibaba (9988 HK): 2Q24, Higher Margin Means Smooth Reorganization, Buy

Alibaba’s operating margin rose to 15% in 2Q24 versus 12% in 2Q23. Every expense as percentage of total revenue decreased and EBITDA of every...

Ming Lu

Alibaba (9988 HK) 3Q24 Earnings Preview: Recovery to Continue, 67% Upside

The financial recovery from 1Q24 will continue in 2Q24. Op margin will improve to 15% in 2Q24 versus 12% in 2Q23. Alibaba has an upside of 69% for...

Ming Lu

Toyota Cross-Shareholding - To Say a Whole Lot Is Left Would Be a US$26bn Understatement

Toyota, Toyota Industries and Denso are tag teaming to unwind some of their stake in Aisin, in a deal worth over US$1bn. While the timing of the...

Sumeet Singh

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