Dongfang Securities: Maintains Alibaba-W "Buy" rating with a target price of HKD 205.34

According to the Zhitong Finance APP, Dongfang Securities released a research report stating that the 2025 Yunqi Conference showcased Alibaba-W (09988)'s rapid progress in AI technology and strong strategic determination to go all-in on AI. The leading position of large language model technology has been further solidified, and significant progress has been made after the update of the multimodal large model. The open-source strategy has led to noticeable growth in the company's model ecosystem and user penetration. The firm is optimistic about the company's continued leadership in large model capabilities and strong BC dual-end penetration under the open-source strategy, raising the revenue growth forecast for Alibaba Cloud and setting a target price of HKD 205.34, maintaining a "Buy" rating.

The report states that the company is strengthening its AI strategic position and increasing investment, with leading model technology and an open-source strategy driving the improvement in BC dual-end penetration rates. It is optimistic about the company's continued leadership in AI cloud and models, as well as Alibaba Cloud's future acceleration. The forecast for the company's FY2026-2028 operating revenue is CNY 100.84 billion / 113.91 billion / 124.82 billion (the original FY2026-2028 forecast was CNY 100.49 billion / 112.56 billion / 121.29 billion, adjusted due to the deepening of the AI strategy and progress in model technology), with adjusted net profits of CNY 141.2 billion / 187.8 billion / 216.6 billion (the original FY2026-2028 forecast was CNY 140.5 billion / 186.6 billion / 209.1 billion, adjusted due to the acceleration of Alibaba Cloud's AI revenue driving profit margin improvement)