Alibaba Group Holdings Ltd (9988.HK) – Spin-off of Cainiao to streamline the business operations

Alibaba Group Holdings Ltd (9988.HK) (Q1FY24)

Stock performance: Alibaba stock gave returns of -7.2% and 13.9% in the period of three months and one year. It has a 52-week high of HKD118.5 and a 52-week low of HKD60.25. It gave returns of -71.4% and CAGR of -34.1% over a period of three years. It had a 200-Day Moving Average of HKD90.412 and a 50- Day Moving Average of HKD88.574.

Quarter Performance: In Q1FY24, revenue of the company increased by 14% to RMB234.16bn, compared to RMB205.56 inQ1FY23. Cost of revenue increased to RMB142.35bn, or 61% of revenue, compared to RMB129.66bn,or 63% of revenue during the same period

Highlights

Alibaba has announced its intention to spin off its subsidiary, Cainiao, by listing its shares on the Hong Kong Stock Exchange. This move is part of a broader strategy to streamline its business operations. After the spin-off, Alibaba will continue to hold the majority of Cainiao’s shares, making it a subsidiary of the company.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– CrispIdea Segment Forecast
– Economic Value Added Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10-Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Crispidea Coverage

No of Pages: 37

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