Guosen Securities: Maintains "Outperform" rating on Alibaba-W (09988), cloud business continues strong growth

According to Zhitong Finance APP, Guosen Securities released a research report stating that it slightly adjusted Alibaba-W's (09988) FY2027-FY2029 revenue forecasts to 1,128.6/1,306.8/1,515.2 billion yuan, with adjustment magnitudes of +0.2%/+0.7%/+2.7%, and FY2027-FY2029 adjusted net profit of 103.2/133.4/171.0 billion yuan, with adjustment magnitudes of +12%/+10%/+9%, mainly due to cloud business growth and the pace of margin improvement as well as better-than-expected improvement in food delivery losses. Currently, the company corresponds to a FY2027 PE of 21x, and the "Outperform" rating is maintained; the bank believes that the profit elasticity in FY27Q2 mainly comes from the significant narrowing of instant retail losses, cloud business growth, and the narrowing of AI Lab losses, and expects that by FY27Q3 the company's cloud business + AI Lab as a whole will achieve break-even.