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Looking at the long-term horizon

■ Alibaba reported 2Q FY3/22 revenue of Rmb201bn, up 29% yoy. Excluding the consolidation of Sun Art, revenue growth was 16% yoy, below our expectation, mainly because of weak CMR growth in the China marketplace.
■ How ever, Cloud and international business achieved strong revenue growth of 33% and 34% yoy, respectively, in 2Q FY3/22, and the Cloud business continued to achieve positive EBITA.
■ We expect Alibaba’s new initiatives, such as Taobao Deal, Cloud, international business, Cainiao logistics and local retail business, to bear fruit in the future.
■ Reiterate Add with a new DCF-based TP of HK$207.

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