JEFFREY: RECONFIRMING ALIBABA AS THE PREFERRED CAPITAL FOR AI, CLOUD OPERATIONS AND AI DEMAND STRONG

On 8 July, Jeffrey published a study predicting that Ali Baba ' s revenue would increase by 9 per cent to approximately $270 billion in the first financial season by the end of June this year, bringing the total EBITA to approximately $26 billion, which is higher than the market forecast of $24 billion. The Bank predicts that the Aliyun Smart Group, driven by strong demand for AI, including model services (MaaS) and overall AI-related income growth, will be the biggest highlight of the season, with a 45 per cent increase in revenues over the same period, compared to the market forecast of 41 per cent and a 40 per cent forecast for the Bank. The profit margin of the cloud business EBITA is projected to improve to 11.5 per cent, and AIDC is expected to have a net profit of $583 million (relative to the market of $239 million, which the bank had expected to achieve only a balance of payments). The Bank maintained the Ali Baba “buy-in” rating, which was reconfirmed as the preferred for AI investment subject, with the US dollar target of $185 and the Hong Kong dollar 179 unchanged。