Alibaba Group Holding Limited (09988.HK) Improvement in both 1QFY2024 growth momentum and profit margin October 26, 2023 181

PSR Recommendation: BUY Status: Upgraded
Target Price: HKD118.95

After 24 years, Alibaba (NYSE: BABA and HKEX: 9988) is evolving from a single company into
a new governance model of “1+6+N” in which major business groups and various companies
have independent operations. “1” represents Alibaba Group’s holding company, “6” refers
to six major business groups – Cloud Intelligence Group, Taobao and Tmall Group, Local
Services Group, Alibaba International Digital Commerce (AIDC) Group, Cainiao Smart
Logistics Network Limited, and Digital Media and Entertainment Group, and “N” refers to
various businesses such as Alibaba Health, Sun Art Retail, and Freshippo. Each entity in the
“6+N” will establish its own board of directors that will provide oversight and support to the
chief executive officer of the business.
Starting from the quarter ended June 30 2023, Alibaba has implemented a new
organizational and governance structure. The six major business groups are: Taobao and
Tmall Group, which includes Taobao, Tmall, Xianyu, and other businesses; Alibaba
International Digital Commerce Group, which includes Lazada, AliExpress, Trendyol, and other businesses; Local Services Group, which mainly includes the “ToHome” business of and the “ToDestination” business of Amap; Cainiao Smart
Logistics Network Limited; Cloud Intelligence Group, which includes Alibaba Cloud, DingTalk
and other businesses; and Digital Media and Entertainment Group, which includes Youku,
Damai and Alibaba Pictures.

About the author

Profile photo of Eric Li

Eric Li

李浩然先生(Eric Li) 高級分析師 現任現為輝立証券持牌高級分析師,曾任職股票基金、家族辦公室及證券公司等,擁有多年的證券研究部門從業及投資經驗,並先後於香港最暢銷的財經媒體撰寫投資專欄。畢業於香港理工大學電子計算系。 Eric is currently a licensed research analyst at Phillip Securities. Prior to joining Phillip Securities, he has years of equity research and investment experiences in asset management company, family office and securities company. Meanwhile, he has written investment columns in Hong Kong`s best-selling financial media for years. He holds Bachelor of Arts in Computing from The Hong Kong Polytechnic University.

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