Broker Name: China Galaxy International Securities (Hong Kong) Co., Limited
Date of Report: January 9, 2026

Excerpt from China Galaxy International Securities (Hong Kong) Co., Limited report.

Report Summary

• Alibaba’s customer management revenue growth is expected to slow significantly in 3QFY3/26 due to a high base effect from previous take rate increases, government appliance trade-in subsidies, and weaker consumer demand. Adjusted EBITA is forecast to fall 47% year-on-year, but management remains focused on e-commerce market share and AI/cloud investments.
• Despite these headwinds, Alibaba’s cloud revenue is projected to accelerate with 35% year-on-year growth, while losses from Quick Commerce are expected to narrow as order value and delivery efficiency improve. The broker retains an “Add” rating with a revised target price of HK\$196, citing revenue upside from cross-selling and AI/cloud expansion, but highlights risks including intense competition and higher subsidies pressuring margins.

Above is an excerpt from a report by China Galaxy International Securities (Hong Kong) Co., Limited. Clients of China Galaxy International Securities (Hong Kong) Co., Limited can be the first to access the full report from the China Galaxy International Securities (Hong Kong) Co., Limited website: https://www.chinastock.com.hk