In today’s briefing:
- Alibaba (BABA US): Strategy at Work
- JD.com (JD US): Strong Profitability And Upsized Share Buyback in 2Q24
- CaiNiao Q1FY Results: Most Interesting Read-Through Is Dramatic Slowdown in X-Border Activity
- Morning Views Asia: Lenovo, Citicore Renewable Energy, Vedanta Resources
- Morning Views Asia: Lenovo, Citicore Renewable Energy, Vedanta Resources
- Morning Views Asia: Lenovo, Citicore Renewable Energy, Vedanta Resources
- Morning Views Asia: Lenovo, Citicore Renewable Energy, Vedanta Resources
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Alibaba (BABA US): Strategy at Work
- Mixed June quarter results at first glance suggest corporate overhaul strategy is working, with clear evidence Taobao/Tmall is stabilizing in terms of market share and profitability.
- Better platform monetization and clear timetable for achieving break-even by non-e-commerce business segments mean double-digit earnings CAGR by FY26 in our view.
- We expect Alibaba’s upswing business cycle and moderating headwind of housing market slump are paving the way for the stock’s re-rating in the next 12-24 months.
JD.com (JD US): Strong Profitability And Upsized Share Buyback in 2Q24
- Profitability of the business surprised on the upside, as the net profit margin of JD.com increased from 3% in 2Q23 to 5% in 2Q24.
- Share buyback accelerated in 2Q24, as the company bought USD2.1bn worth of stock in the quarter, up from USD1.2bn in 1Q24.
- The stock is trading at 7x 2024 PE, with a yield of >10% through dividend and buyback.
CaiNiao Q1FY Results: Most Interesting Read-Through Is Dramatic Slowdown in X-Border Activity
- Alibaba logistics arm CaiNiao’s revenue growth slowed in the June quarter
- Our main takeaway is that Chinese X-border eComm continues to slow
- We believe all of the large X-border eComm platforms may be affected
Morning Views Asia: Lenovo, Citicore Renewable Energy, Vedanta Resources
Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.
Morning Views Asia: Lenovo, Citicore Renewable Energy, Vedanta Resources
Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.
Morning Views Asia: Lenovo, Citicore Renewable Energy, Vedanta Resources
Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.
Morning Views Asia: Lenovo, Citicore Renewable Energy, Vedanta Resources
Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.