Alibaba (BABA) Sells Intime Holdings: Strategic Shift Towards Core E-commerce

Dec 19, 2024

According to a report by BOCOM International, Alibaba (BABA, Financial) has sold its stake in Intime Holdings for a total of 7.4 billion RMB. The sale is expected to result in a 9.3 billion RMB loss but has minimal impact on revenue, affecting it by less than 1%. The move aligns with Alibaba's strategic focus on its core e-commerce platforms, including Taobao and B2B, as well as its international e-commerce efforts. Alibaba Cloud remains a crucial technology driver, supporting the development of artificial intelligence. This shift is part of Alibaba's long-term strategic goals, despite potential for further business adjustments.

BOCOM International maintains a "buy" rating for Alibaba, emphasizing the potential for revenue and profit improvement driven by growth in core e-commerce GMV and monetization rates. The company’s 2024 and 2025 P/E ratios are projected at 10.4x and 9.7x, respectively, with an 8% adjusted net profit growth expected in 2025. The target price remains at $111.

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I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

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