Alibaba'S First Earnings Report

Wall Street investors are finally looking forward to coming.

The first performance report after the listing.

Before the opening of the local market on the morning of November 4th, the Alibaba announced its quarterly report ending September 30th this year, exceeding Wall Street's expectations.

As of September 30th,

Adjusted earnings per share (NOV-GAAP DEPS) 2.79 yuan (about 45 cents), exceeding the expected 2.74 yuan.

The adjusted profit for the quarter was 6 billion 808 million yuan, up 15.5% compared with the same period last year, and the income reached RMB 16 billion 829 million yuan, an increase of 53.7% over the same period last year, all slightly above the expected level.

In its quarterly report, Alibaba stressed that earnings per share were adjusted on the basis of us accounting standards.

Earnings per share were 1.24 yuan (about 20 cents) per share before adjustment.

The company said that the above adjustment was mainly due to the elimination of the corresponding equity incentive payments and intangible assets amortization expenses paid to the employees.

When the news came out, Ali's stock price rose to $105.32.

Shortly before the opening of the conference call, the stock price fell slightly above $100, and still maintained a market value exceeding WAL-MART.

The current price is nearly 50% higher than the price of $68 IPO a month and a half ago.

Although the high share price of Alibaba after listing has caused some investors' vigilance, the enthusiasm of Wall Street has been increasing with the advent of the Quarterly Bulletin.

although

After the IPO, stock price volatility declined, but since late October, the stock price has steadily risen to more than $100 as the market stabilizes and picks up.

Alibaba closed 101.80 dollars a day after closing.

In contrast, Reuters's previous survey shows that Wall Street expects Alibaba's quarterly profits to reach $1 billion 170 million, equivalent to 36 cents per share, and revenue is expected to reach $2 billion 700 million, up 52% over the same period last year, with a profit margin of more than 40%.

FactSet's expectations are more optimistic, and Ali expects to earn 44 cents per share.

"In the short term, Alibaba's fundamentals and investor sentiment are interacted."

"As Alibaba is the leader of the stock market in the US market, if the performance is well done, it will become a big winner," said CEO Xiang Yang of Sierra China, a hedge fund at Wall Street, in an interview with the twenty-first Century economic report.

Wall Street's investment enthusiasm can be seen in recent weeks.

As the stock market is heating up, including KraneShares CSI, China Internet and revival IPO (Renaissance IPO), ETF has increased its holding position for Alibaba. Many ETF focused on IPO's early share price also took Alibaba as its largest share holder.

Ali's performance and conference call

Ali also pays great attention to the release of the first performance report.

In twenty-first Century, economic reports learned from Ali that Cai Chongxin, vice president of the Alibaba group, has arranged its performance in the United States, including CNBC, Peng Bo and Fawkes, after the performance report, and the Ali related team is working hard in recent days for the performance and the pressure is multiplying.

At 7:30 in the morning local time, Alibaba group held a conference call to discuss its performance.

The one hour meeting was mainly answered by Cai Chongxin, CEO Lu Zhaoxi, CFO Wu Wei and COO Zhang Yong.

Alibaba's performance in mobile terminals has attracted analysts' attention.

According to AI data, Alibaba group accounts for 86% of the total merchandise trade volume (GMV) of China Mobile's e-commerce market.

In terms of monthly active users, Taobao Mobile has ranked the most popular mobile app in China in the past two years.

According to Ali quarterly, the monthly active users of mobile e-commerce platform in September reached 217 million, a net increase of about 29 million monthly active users in three months, an increase of 15.4%, an increase of 138.5% over the same period last year.

Ali's conference call answered more than 10 questions.

According to the analyst's questions and previous hot spots, the business topics that American investors are generally concerned about, including Ali investment 10 billion, to create rural electricity providers, long-term active users, upcoming "double eleven" activities, the overall speed and Prospect of Ali's expansion in the United States, and the new actions of Alibaba in the field of small and micro finance, film and entertainment industry after IPO.

When asked about the goal of "double eleven", Zhang Yong stressed that this year is the first year of the globalization of Ali, and one of the main goals of the "double eleven" is to open up more international customers.

Zhang Yong said that this is the sixth time that Alibaba has carried out the "double eleven" business promotion activities. The specific targets will not only stay on the figures, but rather hope to open up the global pattern of Ali and bring more products to Chinese consumers.

At the same time, the "double eleven" also hopes to enhance user experience in the mobile terminal, attracting more active participation of the Ali ecosystem.

In response to Credit Suisse analysts' questions on other revenue channels, Wu said that other sectors, including small and micro finance, are still at an early stage, and the group does not currently expect such businesses to have rapid revenue growth in the short term.

Lu Zhaoxi, chief executive of Alibaba group, said: "in September, the monthly active users of our mobile commerce applications reached 217 million, and the 12 months from the end of September this year, the paction volume from mobile terminals reached 95 billion yuan (about 585 billion 900 million yuan).

The continuous growth of liquidity in mobile business reflects the strong consumer desire, and we are deeply encouraged by this.

In addition, analysts also referred to Ali's tourism, wallet and other businesses.

For fund managers, they are more concerned about the number itself.

"It depends on performance."

Xiang Yang said, "many investors believe that if the profits of Ali can be doubled in the next three years, the current valuation is not high."

According to quarterly reports, the revenue of China's retail business platform (Taobao, Tmall and Juhuasuan) reached RMB 12 billion 769 million yuan, an increase of 47.7% over the same period last year.

According to non US general accounting standards, the profit before interest tax depreciation and amortization (EBITDA) is 8 billion 493 million yuan, an increase of 30.6% over the same period last year, and the adjusted EBITDA rate is 50.5%.

At present, Ali's forward price earnings ratio is about 45 times, and investors need to see the real growth of Ali's performance to prove its long-term valuation rationality.

Another fund manager is cautious about Ali's first performance. He believes that Ali, who first releases quarterly reports after IPO, will go all out to give the Wall Street a good figure.

The monetization rate data of China's electricity supplier market in quarterly reports are also worth noting.

This data is the ratio of the total volume of Alibaba's e-commerce platform to the company's revenue.

It disclosed the value from the second quarter of 2012 to the third quarter of 2014.

The overall monetization rate was 2.30% in the third quarter of this year, the second lowest in the 10 quarter.

The highest season was in the fourth quarter of 2013, with a value of 3.05%.

However, the monetization rate of mobile terminals has been increasing along with the mobile terminal paction volume.

The second quarter of 2012 was 0.44%, and the third quarter of 2014 reached the highest 1.87% in 10 quarters.

In the third quarter of 2014, mobile end trading volume also accounted for 35.8% of the total paction volume.

With the completion of many mergers and acquisitions of Alibaba, the corresponding entry will attract more attention to the flow and trading volume of the platform, and whether it can form stronger revenue conversion capability and raise the monetization rate.

Investors in the stock market are warming up.

Alibaba is not everyone can feed. Recently, more and more investors are investing in this stock through ETF and other ways.

KraneShares CSI is a ETF that invests in the Chinese Internet. The largest holdings are 10.6% Alibaba, 8.9% and 8.2%.

In the past 6 months, the fund has risen 11%.

The IPO fund, which aims to revive early trading stocks after IPO, has also regarded Alibaba as the largest target of its portfolio, currently accounting for 10.8%, while the Zoetis company, which is split out of 9.2%, accounts for 9.2%, and Twitter accounts for 8.2%.

The fund has risen 7% in the past 6 months.

This means that Alibaba, whether as stocks or new shares, can not be ignored in the portfolio of investors.

With the further stabilization of Alibaba's stock price, it is expected to drive the development of China's stock market in the new stage.

Before the Alibaba IPO, investors worried that other stocks would be sold off. Now this stage seems to have passed.

Xiang Yang said that historically, the US stock market has dropped, and China's stock market is selling at first. In the future, this situation may not continue. In the next two or three years, it should be a good opportunity to invest in stocks.

Mark Otto, a senior trader at the NYSE and a designated market maker (DMM), and partner of J. Streicher (@MarkOtto), told the twenty-first Century economic report that stocks in technology, especially electronic business stocks, have performed well so far this year, and before the Alibaba IPO, investors in such stocks are also concerned.

"Traders still believe that these stocks are attractive to China's growth, and even if there are concerns about whether China's economic growth targets will be achieved this year, traders believe that China will still maintain rapid growth in major countries."

He said.

He could not comment on Alibaba stock because of restrictions.