In this briefing:
1. Alibaba (BABA): For Dec. Quarter, Focus on Profit Improvement, But Not Revenue Growth, 40% Upside
- For the December quarter results, the market is focusing on the slowdown of the revenue growth, but we notice that the growth rate of operating profits recovered.
- In two of our previous reports, we mentioned BABA’s efforts on cost control in the second half of 2018. Now we can see the results.
- We believe the most important risk is the significant operating losses in the minor business “digital media”.
- The P/E band suggests that the stock price has an upside of 40%.
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