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Equity Analyst, LightStream Research

Supun Walpola

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.

Equity Bottom-Up

Alibaba Group Holding  / Equity Bottom-Up

<p>Despite the excitement over <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba Group (BABA US)</a>’s New Retail strategy, we believe the likes of Freshippo are still too small to contribute in a meaningful way to Alibaba’s valuation in the near term. However, Alibaba continues to invest heavily around the New Retail theme, both in Freshippo store expansions and through several recent investments in SunArt and Dufry. This implies that Alibaba is now pretty much committed to its New Retail strategy, and so far, seems to be happy with its progress. We do not see any major downside of New Retail for now either.</p><p>In this note, we take a deep dive into Alibaba's new retail businesses, in particular, Freshippo. </p>

Despite the excitement over Alibaba Group (BABA US)’s New Retail strategy, we believe the likes of Freshippo are still too small to contribute in a meaningful way to Alibaba’s valuation in the near term. However, Alibaba continues to invest heavily around the New Retail theme, both in Freshippo store expansions and through several recent investments in SunArt and Dufry. This implies that Alibaba is now pretty much committed to its New Retail strategy, and so far, seems to be happy with its progress. We do not see any major downside of New Retail for now either.In this note, we take a deep dive into Alibaba's new retail businesses, in particular, Freshippo. 

Alibaba: New Retail Is Exciting but Too Small For Now