CICC: Maintains Overweight rating on Alibaba Pictures (01060), raises target price to HK$0.70.

According to the Finance and Economics App, Zhongtong released a research report stating that due to better-than-expected development of Alibaba Pictures' IP derivative business, the bank raised its FY26 Non-IFRS net profit forecast by 13.6% to 1.189 billion yuan and introduced a new FY27 Non-IFRS net profit forecast of 1.344 billion yuan. The current price corresponds to 13.9/12.4 times FY26/FY27 Non-IFRS P/E. The bank maintains an outperform industry rating because the IP derivative business has elasticity, raising the target price by 32.1% to 0.70 Hong Kong dollars, corresponding to 16/14 times FY26/FY27 Non-IFRS P/E, with a 14.8% upside potential compared to the current price.