Yamato: Alibaba Group maintains a buy rating on the long-term outlook for AI commercialization but lowers its target price.

Analysts at Daiwa said in a research report that although the profit performance of Alibaba Group in the third quarter was weaker than expected, they still have a positive long-term outlook. Daiwa analysts stated that they are "more cautious about profit performance than the market average expectations, but optimistic about the mid-term AI commercial prospects of Alibaba Cloud", and pointed out that Alibaba is increasingly focusing on commercializing its AI business. They said that the new AI business division, Token Hub, is likely to become the "core commercialization engine for scalable token consumption". Developers use tokens to measure and pay for AI work. These analysts said that although the food delivery business recorded high losses in the December quarter, they expect the losses to narrow in the next quarter. They maintained a buy rating but lowered the target price from HK$191.00 to HK$184.00.