Yamato: Reiterate "Buy" rating on Alibaba-SW (09988) with target price lowered to HK$140

Yamato released a research report stating that it reiterates its "buy" rating on Alibaba-SW (09988), with a target price lowered from HK$146 to HK$140, and believes that the reacceleration of CMR growth and stable market share are prerequisites for further inflow of Southbound funds into the stock. The report states that although the gap between Alibaba's customer management revenue (CMR) and GMV is narrowing, there were no major surprises in the second quarter performance, and it is expected that the growth pace of CMR and GMV will gradually improve. The bank has raised its earnings forecast for the fiscal years 2025 to 2027 by 1% to 10% to account for the potential improvement in the profitability of Alibaba International Digital Commerce Group (AIDC) and local services.