CICC: Maintains Alibaba-W (09988) with Outperform rating, target price of HKD 147.

According to the Securities Times APP, CICC released a research report stating that currently, Alibaba-W (09988, BABA.US) Hong Kong and US stocks are trading at 16/18 times FY26 and 13/15 times FY27 non-GAAP P/E ratios. FY26 revenue was revised down by 3% to 1,068.3 billion yuan, affected by High Xin Retail and Intai, and FY26 non-GAAP net profit attributable to shareholders was revised down by 29% to 121.8 billion yuan, mainly due to increased investment in Taobao Flash Sale. The bank introduced FY27 revenue and profit forecast of 1,215.1 billion yuan and 149.3 billion yuan, respectively, switched Alibaba's valuation to segment valuation and switched valuation to FY27, based on 13x P/E for e-commerce business and 3.5x P/S for cloud computing business, mainly due to the independent profitability of e-commerce and cloud business and adjustment of valuation center. The corresponding target prices for US stocks and Hong Kong stocks are $151 and HKD 147, respectively, a 35% increase from the previous target price. It maintains an outperform industry rating, with 27% and 12% upside potential for Hong Kong stocks and US stocks at the current price levels.