CICC: Maintains Alibaba-SW (09988) "Outperform" rating with a target price of HKD 109.

CICC released a research report, maintaining Alibaba-SW (09988) with an "outperform" rating and a target price of 109 Hong Kong dollars. The management team expressed optimism about the development of generative AI at the Alibaba Cloud Summit, believing that the digital world and physical world will gradually be reshaped by AI, with autonomous driving and robotics being important applications. CICC pointed out that Alibaba Cloud is committed to upgrading the cloud computing system in the AI era, and believes that it can address supply shortages through technological innovations such as "one cloud, multiple cores," showcasing the value of a leading cloud provider. The company also believes that the opportunities presented by generative AI will help differentiate Alibaba Cloud from traditional cloud providers, as they possess competitive advantages in high-level computing chip layout, software technology capabilities, and algorithm applications. The forward-looking research and development of large-model technology and leading the transformation of cloud computing industry can leverage the company's leadership effect, driving the adoption of AI by enterprises and contributing to the recovery of Alibaba Cloud's growth rate.