强劲的云收入增长；仍着眼于快速电商产生的协同效应

eyeing on synergy generatedfrom quick commerce Strong cloud revenue growth; still eyeing onsynergy generated from quick commerce Target PriceUS$206.40(Previous TPUS$209.40)Up/Downside31.5%Current PriceUS$157.01 Alibaba2QFY26(March year-end) revenue was RMB247.8bn, up4.8% YoY,2.7/1.1%better thanour forecast/Bloomberg consensus. Adj.EBITAin2QFY26was RMB9.1bn,down78% YoYand was 36% lower than consensus,due toinvestmentinquick commerce business,user experience, and technology,butwas better than ourforecastat RMB6.1bn.Thecloud revenuegrowth of 34%YoYaccelerated faster than our expectation/consensus at 30/28%,andmanagementhighlighted strong customer demand which in our view couldsupportstrong cloud revenue growth in the coming quarters.However,management is expecting some fluctuationsincustomer management revenue China Internet Saiyi HE, CFA(852) 3916 1739hesaiyi@cmbi.com.hk Ye TAO, CFAfranktao@cmbi.com.hk Wentao LU, CFAluwentao@cmbi.com.hk Strong cloud revenue growth ahead ofmarket expectation.CloudIntelligence Group (CIG)achieved revenuegrowthof34.5% YoY in2QFY26(2QFY25:7.1%;1QFY26:25.8%), driven bypublic cloud revenue growth,including the increasing adoption ofAI-related products.Capital expenditurewas RMB31.5bn in 2QFY26 (1QFY26:RMB38.7bn), and managementstressed that it has deployed c. RMB120bn in capital expenditure toward AIand cloud infrastructure over the past four quarters.Managementremains Joanna Ma(852) 3761 8838joannama@cmbi.com.hk Synergies generated from QC remains key to watch.WithinAlibabaChina E-commerce Group (ACEG), CMR delivered growth of10.1% YoYin2QFY26,inline with our estimate, driven by GMV growth andimprovementof take rate.Management is expecting a short-term fluctuation in YoYgrowth of CMR in 3QFY26 due to high base effect.Revenue from QC wasRMB22.9bn,up 60%YoY.Regarding synergies between QC andconventional e-commerce,management stressed: 1) incremental CMRcontribution due to expansion in user base and improvement in useractiveness; and 2) increase in cross-sellingtocategories such as groceries,healthcare, and supermarket categories. For example, Freshippo and Tmall Source: FactSet Key businesssegment updates ACEG(49.1% of2QFY26revenue) In2QFY26, revenue generated fromACEGwas RMB132.6bn, up15.5% YoY.Within thesegment, E-commerce/QC/China Commerce saw revenue growth of9.0/59.9/12.6% YoYrespectively.Within E-commerce sub-segment,CMR/direct sales,logistics&others CMR revenue growth was primarily driven by theimprovementof take rate,which benefitedfrom the increasing penetration of Quanzhantui and the addition of softwareservice fees Regarding QC,managementstressedthat: 1) since Nov 2025,per order UE loss forQChas been cut by 50% compared to Juland Aug 2025, driven by improvement in order mixand economies of scale from growing order volume which has driven reduction in fulfilmentcost; 2) QC has maintained stable order share with GMV share trending upwards; and 3)average order value (AOV) of QC has grown by double digitsmost recentlycompared tothat in Aug 2025. Managementhighlightedthatit has noted synergybetweenQCandcorebusiness in terms of: 1) incremental CMR contribution due to expansion in user base and AdjustedEBITA for the segment was RMB10.5bn in2QFY26,down76% YoY, primarilydue to the investment in quick commerce, user experience, and technology.Managementexpects the loss of QC to significantly decrease QoQ in 3QFY26, driven by thereduction AIDC (12.9% of2QFY26revenue) In2QFY26, revenue generated from Alibaba International Digital Commerce Group (AIDC)was RMB34.8bn, up9.9% YoY, among which international commerce retail revenue wasup9.6% YoY,driven by the increase in revenuecontributed by AliExpress and other Adjusted EBITA for AIDC wasaprofitofRMB162mn in2QFY26,turning aroundfromRMB2.9bninlossin2QFY25,thanks tosignificant improvement in AliExpress’ operating CIG(14.7% of2QFY26revenue) Revenue of CIG came in at RMB39.8bn in2QFY26, up34% YoY,ahead of our forecast at30%, primarily driven by public cloud revenue growth, including the increasing adoption ofAI-related products.Overall revenue excluding Alibaba-consolidated subsidiaries Management notedthat AI related product revenue accounted for over 20% of revenuefrom external customers with its contribution continuingto increase. Capital expenditures in2QFY26 wereRMB31.5bn, and management highlightedthatit hasdeployedapproximately RMB120bn in capital expenditure toward AI and cloudinfrastructureover the past four quarters.Management notedthatsupply constraints stillpersist, and noted that the pace that Alibaba is adding new servers is insufficient to keep Adjusted EBITAfor CIG was RMB3.6bn in2QFY26, up35% YoY, and theadj. EBITAmargin was9.0%, flat YoY, due to improving operating efficiency, but offset by increasing investment in customer growth and technology innovation.We are positivethatAlibabacoulddrive robustcloudrevenue growth in an efficient way, and could maintain a relatively All others (23.3% of2QFY2