China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

[Alibaba (BABA US) Target Price Change]: Cut TP for Intensified Competition in ECommerce

[Alibaba (BABA US) Target Price Change]: No Growth in March Promotion, Cut TP to US$100

Alibaba Group Holding Limited: Major Drivers

China/Asia TMT

Shawn Yang

Equity Bottom-Up

<ul>
<li>In FY24, we expect BABA to moderately increase spending to defend its market share and user time spent through new user centric strategies.  </li>
<li>Strategies include 1) increasing share of video in Taobao’s information flow , and 2) introducing low-price features in Taobao. As a result, we cut BABA’s FY24 EPS by 5.0%.</li>
<li>However, due to 1) long-term growth, and 2) the more independent operation of its six business units in the future, we have raised BABA’s TP to US$ 109.</li>
</ul>


In FY24, we expect BABA to moderately increase spending to defend its market share and user time spent through new user centric strategies.  
Strategies include 1) increasing share of video in Taobao’s information flow , and 2) introducing low-price features in Taobao. As a result, we cut BABA’s FY24 EPS by 5.0%.
However, due to 1) long-term growth, and 2) the more independent operation of its six business units in the future, we have raised BABA’s TP to US$ 109.


[Alibaba (BABA US) Target Price Change]: Raise TP Amid Necessary Spendings in FY24