June 12, 2017

Alibaba Group (BABA US) BUY

Investor Day 2: Unveiling the Share Price
12m Price Target
USD 139.44
USD 167.00 (+20%)

Data Economy Previous Price Target USD 167.00

Reiterate BUY with Street highest TP USD167 Company Description

Alibaba is the largest ecommerce company in China,
Investor day saw over 350+ investors visiting Alibabas Hangzhou
with marketplaces in retail and wholesale, as well as
Headquarters for a glimpse of the future. If day 1 was about existing cloud computing and other services.
businesses and revenue guidance, then day 2 was on how data
technology will transform Alibabas economy and connects each business
unit, empowered by its Cloud infrastructure. We believe that Alibaba is Statistics
well positioned to capture the next wave of growth with its access to 52w high/low (USD) 142.34/74.23
Internet

data intelligence, premium media assets, global logistics network and 3m avg turnover (USDm) 1,523.1
leading integrated financial services hub. Maintain SOTP TP of USD167. Free float (%) 99.1
Issued shares (m) 2,495
Cloud computing: from IT to DT Market capitalisation USD347.9B
While Aliyun is leading the China IaaS (Infrastructure as a Service) market USD347.9B
with 40.7% share and equivalent to next 7 largest Chinese players Major shareholders:
Temasek Holdings Pte Ltd. (Investment Ma 2.2%
combined and 4th largest cloud revenues in the world, it is much more Baillie Gifford & Co. 1.8%
than an infrastructure provider. Aliyun is the brain behind Alibabas Capital Research & Management Co. (Globa 1.4%
Databank and Uni-marketing, which are the core drivers of the
China

Price Performance
companys impressive marketing service revenue growth. We believe
Alibaba can continue to be a dominant cloud provider in Asia, and one of 150 170
140 160
the top players globally as well.
130 150

Entertainment: filling the gaps of shopping 120

110
140
130
Jack Ma thinks that there will be 500m middle-class Chinese within 5 100 120

years, and demand for online entertainment can only continue to rise. 90 110
80 100
BABAs eCommerce platforms are already capturing their shopping needs,
70 90
but premium media assets will allow Alibaba to understand how to look 60 80
at consumers from the entertainment angle. At BABA, each unique user 50 70
Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17
has his/her actions on each platform recorded under one identity.

Midas touch; large minority investments up 4x

Alibaba - (LHS, USD) Alibaba / NYSE composite index - (RHS, %)

-1M -3M -12M

While some investors criticized the lack of transparency on the
Absolute (%) 16 35 80
companys investment strategy historically, management took the
Relative to index (%) 14 32 62
opportunity to assure investors that they are strategic and the
Source: FactSet
management takes prudent approach. We agree BABA has been a good
minority investor thus far 4x return on USD4b initial investment but
the jury is still out on the success of its strategic investments.

FYE Mar (CNY m) FY15A FY16A FY17E FY18E FY19E

Revenue 76,204 101,143 158,273 229,346 301,566
EBITDA 27,550 35,732 57,938 88,291 120,489
Core net profit 34,981 42,791 57,871 85,218 114,432
Core FDEPS (CNY) 13.99 16.70 22.49 32.79 43.60
Core FDEPS growth(%) 15.4 19.4 34.7 45.8 33.0
Net DPS (CNY) 0.00 0.00 0.00 0.00 0.00
Core FD P/E (x) 67.8 56.8 42.2 28.9 21.7
P/BV (x) 15.2 10.7 8.5 6.7 5.1
Net dividend yield (%) 0.0 0.0 0.0 0.0 0.0
ROAE (%) 26.2 39.2 16.7 19.2 20.5
ROAA (%) 19.1 13.8 14.4 17.2 18.4
EV/EBITDA (x) 42.2 34.7 40.4 26.8 19.0
Net gearing (%) (incl perps) net cash net cash net cash net cash net cash
Consensus net profit - - 39,573 53,276 71,230
MKE vs. Consensus (%) - - 4.2 15.3 21.2

Mitchell Kim Jeffrey Kwong

mkim@maybank-keusa.com jeffreykwong@kimeng.com.hk
(852) 2268 0634 (852) 2268 0635

THIS REPORT HAS BEEN PREPARED BY KIM ENG SECURITIES (HK) LTD
SEE PAGE 14 FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS
Alibaba Group

1. Investment thesis: BUY

As a follow-up to our note on Investor Day 1, Day 2 was about
management explaining how all the pieces fit in towards BABA achieving
its vision: a world empowered by data technology.

Alibaba's senior management team has shared with investors what they
see in each growing business, and where the synergies will come from in
the long run. The underlying theme is data -- Jack Ma calls this the most
important resource today, and similar to electricity centuries ago. They
are spending their efforts to gather data from all ends and through that to
understand consumption behaviour in China.

Fig 1: Alibabas economy is connected by data

Cloud Entertainment Cainiao Ant Financial

Online Gateway to
Data
entertainment Delivery and online finance
synergy Data analytics
behavior and fulfilment; global and payment;
with EC and intelligence
enable media expansion entry point to
business
assets online shopping
874k paying 500m MAU 46m packages per 520m MAU
Metrics
customers (Global) day (Alipay)
8 consecutive Triple digit
quarters of triple growth in Youku Rural coverage Offline payment
Growth
digit revenue subscription 90%+ YoY up 7x
growth members
Source: Company, Maybank Kim Eng

Alibaba has time and time again demonstrated their capabilities in

understanding the long term strategic values across the entire ecosystem.
Executive VC Joe Tsai shared that Alibaba is always looking for ways to
expand its network, and the only way to create value is through synergies.
While investors often criticized their immense amount of investments,
management is pleased with the results of their investments since BABA
IPO. Alibaba invested USD4b for minority stakes in listed companies,
including Weibo, Momo and Cainiao, and these investments have returned
over 4x at USD18b fair value. This is similar to a game of Go -- not every
piece on the board provides immediate impact, but the good moves can
eventually come to use when the right time comes.

Fig 2: Efficient capital allocation: 4x return on large minority investments

Source: Company

June 12, 2017 2

Alibaba Group

2. Cloud computing and technology: from

Information Technology (IT) to Data
Technology (DT)
The secret weapon behind Alibabas massive data bank is its cloud
computing technologies. While it is important to have access to data, all
that is futile without the right tools to analyse it. Alibaba realized and
seized this opportunity back in 2009 and has since built the best cloud
computing company in China. Comparing to Amazon Web Services (AWS),
Alibabas 2 year CAGR prior to reaching USD1b scale is at 115%, beating
AWSs 88% comfortably as the fastest growing major provider in the world.

Many investors could not fathom how Alibaba established the lead, given
that its competitors, Baidu (BIDU US, Not Covered), Tencent (700 HK, Not
Covered) and even Amazon (AMZN US, Not Covered), have the same
amount of resources over the same period. The answer is simple: Alibaba
Clouds largest customer is Alibaba itself the largest ecommerce
platform in the world with 450m+ buyers. The amount of calculations
required, especially for Double 11, forces Alibaba to push its limits.
Without the right training ground, it is difficult to grow as a platform in
this space. Alibaba Cloud processed 175k orders per second at its peak in
Double 11 last year. In comparison, there is no such challenge for US
companies to solve; not even Black Friday is close to the same scale.

2.1 Cloud computing beyond datacenters expanding

business boundaries; solving problems traditional IT
could not tap into

Much of the focus in the past is on its IaaS capabilities, in which Alibaba is
still the sole leader in this market. Its revenue size in this segment is
equivalent to next 7 largest players combined. However, Alibaba Cloud is
much more than providing infrastructure and hardware to companies in
China and it is easy to misunderstand its vision. The company is already
a strong force in the overall public cloud segment, a market that is
growing at 17% CAGR in China and ahead of global market growth.

Fig 3: Alibaba leads the China IaaS market with revenue size Fig 4: Chinas public cloud market growing at 17% CAGR,
equivalent to next 7 players combined ahead of global market growth
Series3
(USD b)
Alibaba Cloud Global Public Cloud ex China (LHS)
500 China Public Cloud % YoY (RHS) 30%
China Telecom 436
18.6%
Tencent 400
17% CAGR 381 25%
3.8% 331
40.7% Kingsoft 286 20%
300 245
4.6%
Ucloud 209 15%
179
200
5.0% Microsoft 10%
China Unicom 100
5.5% 5%
7.3% 8.5%
AWS
0 9 11 14 16 19 21 25 0%
6.0%
2015 2016 2017E 2018E 2019E 2020E 2021E
Source: IDC Source: Gartner

June 12, 2017 3

Alibaba Group

Cloud computing is not just about reducing cost, but it is the sophisticated
computing power that adds real value to businesses. Alibabas advanced
technology allows companies to tap into the world of data intelligence,
ranging from data processing, big data analysis, voice/image recognition
to machine learning. Many enterprises do not have such technology to
utilize, but through Alibaba Cloud, this adds new meaning to their years of
data. These enterprises do not have to heavily expand their IT
expenditure either, as traditional IT cost has already peaked for these
companies. They can simply spend the additional budget each year on
cloud services. Enterprises are showing their appreciation; over 1/3 of
Chinas top 500 companies are already on Alibaba Cloud.

Within Alibabas economy, these technologies are already applied to all

businesses. For example, it is responsible for creating the personalized
front page on Taobao, matching its 507m MAU and 1 billion listings in
different categories. It also enabled Databank and Uni-marketing for
marketing capabilities across the group, AI wealth management and Zhima
credit for Ant Financial, and 46m order processing per day for Cainiao. It
is the backbone powering Alibabas entire ecosystem.

Fig 5: More than data storage; into the world of data intelligence

Source: Company data

3. Entertainment: filling the gaps in

eCommerce and enabling media assets
Shopping is only one form of online entertainment, and entertainment
business will only become more important in the future as Chinese middle
class continues to grow. Jack Ma wants to capture this, as he sees the
middle class of 300m population today expanding into 500m in 5 years
time. Through uni-identity (creating a single identity of its users across all
Alibaba affiliated platforms), Alibaba has access to the behaviour of its
users on all forms of online entertainment, which is a highly efficient
method to complement its eCommerce platforms. According to
management, entertainment business already had 500m MAU in FY17,
reaching the same scale as its eCommerce business.

Fig 6: Focusing on synergies and value creation between the 500m MAU of
entertainment and eCommerce businesses

Source: Company
June 12, 2017 4
Alibaba Group

3.1 Monetization will take time, but indirect impact is far

more important

While entertainment unit is still in losses and management emphasized

that they are not in a hurry to monetize these assets, we believe the
indirect impact is far more important. Entertainment data is a resource
it can lead to more precise targeting advertisements for buyers, improving
the closed loop marketing within Alibabas ecosystem, and serves as an
entry point to its eCommerce business. They can be gateways of each
other to provide access points and cross-platform services:

Youku and Tmall: Tmall provides trial Youku memberships and

referral problems to its existing 450m buyers, while Double 11
live show was exclusively broadcast on Youku to drive sales.
Youku also created original content for Tmall to stimulate sales.

UC Web: UC Headlines, its news app, reached 200 MAU globally

as of April 2017. UC Browser is a top 2 browser app in China and
is ranked #1 in India and Indonesia. It helps Alibaba to understand
user browsing behaviour and personal interest as they click on
daily news.

Ticketing business (Tao Piao Piao, Damai): Helps improving

Alibaba Pictures box office and online merchandising for Taobao.
Management estimated that 80% of all movie ticket sales were
generated online in China vs 30% in US, while live event ticket
industry is also catching up at USD7b vs USD29b in US.

Fig 7: Comprehensive lineup of media assets

Source: Company

June 12, 2017 5

Alibaba Group

4. Cainiao: Chinas smart logistics through data

Growing demand of online shopping requires a strong logistics network to
support the physical delivery to end customers, and it is only through
collaboration that allows Alibaba to scale up efficiently to serve its CNY
3.8 trillion GMV. Cainiao logistics network provides the core system to
connect existing infrastructure of logistics companies with buyers,
processing 46 million orders a day with just 2,000 employees. This is yet
another powerful application of Alibabas computing power; in comparison,
its domestic and US counterparts have over 100k employees. Even better,
this is a result of collaboration; logistics companies are not competing
with Alibaba, but growing together as a team.

Cainiaos domestic fulfilment network coverage is comprehensive:

Warehouse GFA: 4 million sq m, up 130% YoY

Delivery coverage: 2,700 counties and districts
Next day delivery coverage: 1,000 counties and districts, up
100%+
Same day delivery coverage: 150 counties and districts, up 100%+

We believe that Cainiao is more than a logistics unit only serving Alibabas
needs. Similar to cloud computing, Cainiaos success means Alibaba has
solved the logistics problem for China, and the company can use its
expertise to help other small and medium sized logistics companies to
grow. 60%+ of logistics companies are not fully digitalized in China, while
30-40% logistics vehicles are vacant due to poor forecasting and planning.
With Cainiaos data intelligence, it can fully utilize these existing
resources without much additional cost in the long run.

Fig 8: Cainiaos nationwide fulfillment network

Source: Company

4.1 Minimal capital investment going forward

Management believes that there will be minimal capital investments

required, given that it already has access to 4 million sq m warehouses in
China with half of them owned by Cainiao. Going forward, it will spend
more focus on ensuring a smooth data flow across all logistics partners
and reduce inefficiencies.

June 12, 2017 6

Alibaba Group

Fulfilment will also see more improvements in the future. However,

management thinks that additional investments wont be significant either
because fulfilment is about ensuring inventory is at a healthy level, and
shipping it at the shortest time when buyers place an order. It can always
utilize properties of its partners to achieve this.

We do remain cautious on Cainiao related expenses to Alibaba as

management is not planning to monetize this business in the near term,
while they continue to expand in rural areas in China and also globally.
We have factored in about 3% of revenue to cost of revenue for Cainiaos
drag.

4.2 SF Express conflict: how it all started and what is the

impact

Cainiao had an agreement with a subsidiary of SF Express on self pickup

lock boxes in the past. The notifications of these lock boxes are sent
through text messages, but Alibaba owns the customer phone numbers.
Thus, SF Express had to go through Alibaba to connect with customers.
Management believes that SF Express had access to more phone numbers
than they should have, including those not using the service, and thats
how the conflict started.
In terms of impact, the number of parcels delivered by SF Express is small
relative to overall orders delivered per day, and Alibaba said they are still
going to keep an open attitude to working with all partners, including SF
Express, as they are a platform service provider. It requires collaboration
to be successful.

5. Ant Financial: TechFin company redefining

financial services
Ant Financials mission is simple to enable the world with access to
financial services, similar to Alibabas original goal to provide access
between SMEs and buyers. Chinese users are finding value in this business;
80% users are using more than just the payment services but also in other
categories, such as wealth management and insurance. It is slowly
transforming from a payment platform to one of the largest integrated
online financial services hub in the world.

Fig 9: More than just a payment platform: 80% users are using more than 1 service

Source: Company

June 12, 2017 7

Alibaba Group

5.1 Payment: an entry point to Alibabas economy

Alipay, the companys payment unit, now has 520m annual active users,
more than double of Paypals 203m active accounts. It was a key
infrastructure in Alibabas early success as an eCommerce platform, but
today it is much greater than a transaction service unit:

Alipay is transforming China into a cashless world. It connects offline

retailers to the world of online payment simply through QR code. To
send/receive payment, it is as easy as just scanning another persons code
and it will be completed securely within a matter of seconds. You could
survive a typical day with just a smartphone and would be able to pay for
food, transportation and other daily needs.

Adoption growth is robust. There were 7x more offline payment

transactions in March 2017 comparing to a year ago. User engagement also
improved; DAU went up 54% over the same period. Even more, 70% of the
transactions were in actual commercial transactions, not money transfer
between users e.g. red packets.

Fig 10: 7x more offline payment transactions Fig 11: Growing user engagement; DAU up 54% YoY

Source: Company Source: Company

5.2 Integrated financial services: serving all financial needs

Ant Financial is scaling up quickly as it continues to redefine online

financial services. It is already a leading player in various segments,
including wealth management, online insurance and credit system. Paytm,
one of its partners, became the 4th largest e-Wallet platform worldwide
through the help of Ant Financial, with total number of wallets growing at
10x and daily transactions up 13x.

Fig 12: Ant Financial is growing rapidly

Wealth
Payment Insurance Credit Score
Management
Ant Fortune, Ant Insurance
Business unit Alipay Zhima Credit
Yue bao Services
Annual active user (m) 520 330 392 257
Charles
Competitor Paypal Ping An FICO Score US
Schwab
Annual active user (m) 203 10 131 180
Source: Company

June 12, 2017 8

Alibaba Group

6. Valuation
Our price target of USD167 is based on a sum of the part analysis. We used
a DCF valuation methodology for the core eCommerce business, as we
believe DCF is the best methodology for capturing the long-term value of
the platform. We are using a WACC of 8.8%, a cost of equity of 10.1%, and
a terminal growth rate of 3%. We also added the NAV (Net Asset Value) of
the associates at the initial investment value. There is more upside if
some or all of these associates equity values rise in the future.

June 12, 2017 9

Alibaba Group

Value Proposition Price Drivers

Dominant e-commerce company in China well positioned Historical share price trend
1
to capture the strong consumption growth and rise of 130 140
SMEs. 120 2
5 130
Its dominant scale and asset-light business model allow 110 3 120
the company to enjoy sustainable long-term growth and 100 4 110
broadly maintain market leadership. 90 100
Estimated to generate a FCF yield of 10-15% in the outer 80 90
years thanks to its high margins and low capex 70 80
requirement. 60 70

The company is investing significantly in future businesses 50 60

Sep-14 Feb-15 Jul-15 Dec-15 May-16 Oct-16 Mar-17
to broaden its platform. Unlocking the value of such assets
could provide further upside. Alibaba - (LHS, USD) Alibaba / MSCI AC Asia ex JP - (RHS, %)

Operating profit forecast Source: Bloomberg, Maybank Kim Eng

(CNY m) Operating Profit, GAAP OPM

140,000 55%
1. Post-IPO, investors took some chips off the table, selling
120,000 50%
into stronger than expected 3Q15 results.
100,000 45% 2. Concerns over allegation of Taobao selling counterfeit
80,000 40% goods created an overhang, as well as a continuing
60,000 35% decline of its monetization rate.
40,000 30% 3. Solid GMV growth at JD prompted investors to switch to
20,000 25% JD on concern that JD wins market share from Alibaba,
0 20% like Amazon did over eBay. BABA shares completely
ignored throughout China liquidity run.
4. Weak revenue growth and China consumption concerns
Source: Company data, Maybank Kim Eng drove shares down.
5. BABA outperformed the rebounding market as revenue
growth reaccelerated with increasing monetization rate.

Financial Metrics Swing Factors

To assess revenue growth, investors need to focus on GMV
(gross sales) and monetization rate.
Monetization rate shows how much revenue is generated
from sales transacted on the platforms.
Operating margin: any sign of margin increase with costs
containment could be a catalyst for the stock.
Operating margin and blended monetization rate
Upside
Better than expected revenue growth with increasing
click volume leading to higher revenue per buyer and
revenue per MAU (Monthly Active User)
Higher margins, as associates improve their margins.
Listing of key associates or assets (e.g. Ant Financial).

EBIT, non-GAAP (LHS) Monetization rate (RHS)

Downside
60% 4.0%
Loss of major global brands to JD.com due to counterfeit
55% 3.5% concerns and/or unexpected regulatory changes
50% proposed by the government.
3.0% Slower buyer growth or decline in GMV per buyer as
45% competition intensifies or monetization rate declines.
2.5%
40% Losses from new investments and associates drag down
2.0% margins.
35%

30% 1.5%
FY12 FY13 FY14 FY15 FY16 FY17 FY18E
Source: Company data, Maybank Kim Eng

mkim@maybank-keusa.com

June 12, 2017 10

Alibaba Group

FYE 31 Mar FY15A FY16A FY17E FY18E FY19E

Key Metrics
P/E (reported) (x) 57.2 16.8 57.3 39.7 28.5
Core P/E (x) 63.3 54.5 40.8 28.6 21.5
Core FD P/E (x) 67.8 56.8 42.2 28.9 21.7
P/BV (x) 15.2 10.7 8.5 6.7 5.1
P/NTA (x) 15.2 10.7 8.5 6.7 5.1
Net dividend yield (%) 0.0 0.0 0.0 0.0 0.0
FCF yield (%) 1.5 2.0 2.1 3.7 4.8
EV/EBITDA (x) 42.2 34.7 40.4 26.8 19.0
EV/EBIT (x) 50.2 42.6 48.7 31.3 21.8

INCOME STATEMENT (CNY m)

Revenue 76,204.0 101,143.0 158,273.0 229,346.3 301,565.9
Gross profit 52,370.0 66,788.0 98,790.0 139,580.4 181,614.5
EBITDA 27,550.0 35,732.0 57,937.5 88,291.3 120,489.2
Depreciation (2,326.0) (3,699.0) (4,824.5) (7,201.2) (9,879.9)
Amortisation (2,089.0) (2,931.0) (5,058.0) (5,408.0) (5,496.0)
EBIT 23,135.0 29,102.0 48,055.0 75,682.1 105,113.3
Net interest income /(exp) 6,705.0 50,308.0 5,888.0 5,013.4 7,423.6
Associates & JV (1,590.0) (1,730.0) (5,027.0) (4,775.7) (4,298.1)
Other pretax income 2,486.0 2,058.0 6,086.0 6,390.3 6,709.8
Pretax profit 30,736.0 79,738.0 55,002.0 82,310.1 114,948.6
Income tax (6,416.0) (8,449.0) (13,776.0) (20,900.6) (28,619.2)
Reported net profit 24,320.0 71,289.0 41,226.0 61,409.5 86,329.4
Core net profit 34,981.0 42,791.0 57,871.0 85,218.1 114,432.4
Preferred Dividends 0.0 0.0 0.0 0.0 0.0

BALANCE SHEET (CNY m)

Cash & Short Term Investments 108,193.0 106,818.0 105,983.1 153,121.2 254,212.6
Accounts receivable 13,813.0 17,028.0 28,240.9 39,085.5 49,703.2
Inventory 0.0 0.0 0.0 0.0 0.0
Reinsurance assets 0.0 0.0 0.0 0.0 0.0
Property, Plant & Equip (net) 9,139.0 13,629.0 19,583.3 28,436.4 36,650.5
Intangible assets 48,508.0 87,015.0 117,408.0 122,187.8 122,625.4
Investment in Associates & JVs 33,877.0 91,461.0 118,899.3 154,569.1 170,026.0
Other assets 41,904.0 48,499.0 50,976.1 54,320.3 57,614.0
Total assets 255,434.0 364,450.0 441,090.6 551,720.3 690,831.7
ST interest bearing debt 1,990.0 4,304.0 637.0 471.0 215.0
Accounts payable 19,834.0 27,334.0 41,192.9 57,430.5 73,422.2
Insurance contract liabilities 0.0 0.0 0.0 0.0 0.0
LT interest bearing debt 50,603.0 53,467.0 53,467.0 53,467.0 53,467.0
Other liabilities 24,936.0 29,456.0 38,684.0 48,898.0 58,803.0
Total Liabilities 97,363.0 114,561.0 133,980.6 160,266.2 185,907.3
Shareholders Equity 146,097.0 217,337.0 277,007.0 363,151.1 478,421.5
Minority Interest 11,974.0 32,552.0 30,103.0 28,303.0 26,503.0
Total shareholder equity 158,071.0 249,889.0 307,110.0 391,454.1 504,924.5
Perpetual securities 0.0 0.0 0.0 0.0 0.0
Total liabilities and equity 255,434.0 364,450.0 441,090.6 551,720.3 690,831.7

CASH FLOW (CNY m)

Pretax profit 30,736.0 79,738.0 55,002.0 82,310.1 114,948.6
Depreciation & amortisation 4,415.0 6,630.0 9,882.5 12,609.2 15,375.9
Adj net interest (income)/exp (6,705.0) (50,308.0) (5,888.0) (5,013.4) (7,423.6)
Change in working capital 1,854.0 7,792.0 9,225.0 12,099.0 11,871.1
Cash taxes paid (6,416.0) (8,449.0) (13,776.0) (20,900.6) (28,619.2)
Other operating cash flow 10,628.0 (28,875.0) 16,166.7 23,098.3 27,255.5
Cash flow from operations 34,512.0 6,528.0 70,612.2 104,202.7 133,408.3
Capex (7,705.0) (10,845.0) (25,940.6) (20,155.4) (22,810.2)
Free cash flow 33,512.0 45,991.0 50,559.6 89,060.7 118,021.7
Equity raised / (purchased) 61,438.0 (19,102.0) 0.0 0.0 0.0
Change in Debt 25,940.0 2,478.0 (3,667.0) (166.0) (256.0)
Perpetual securities distribution 0.0 0.0 0.0 0.0 0.0
Other invest/financing cash flow (38,925.0) 18,375.0 (41,839.5) (36,743.2) (9,250.7)
Effect of exch rate changes (112.0) 466.0 0.0 0.0 0.0
Net cash flow 75,148.0 (2,100.0) (834.9) 47,138.1 101,091.4

June 12, 2017 11

Alibaba Group

FYE 31 Mar FY15A FY16A FY17E FY18E FY19E

Key Ratios
Growth ratios (%)
Revenue growth 45.1 32.7 56.5 44.9 31.5
EBITDA growth 3.7 29.7 62.1 52.4 36.5
EBIT growth (7.2) 25.8 65.1 57.5 38.9
Pretax growth 15.6 159.4 (31.0) 49.6 39.7
Reported net profit growth 3.9 193.1 (42.2) 49.0 40.6
Core net profit growth 23.7 22.3 35.2 47.3 34.3

Profitability ratios (%)

EBITDA margin 36.2 35.3 36.6 38.5 40.0
EBIT margin 30.4 28.8 30.4 33.0 34.9
Pretax profit margin 40.3 78.8 34.8 35.9 38.1
Payout ratio 0.0 0.0 0.0 0.0 0.0

DuPont analysis
Net profit margin (%) 31.9 70.5 26.0 26.8 28.6
Revenue/Assets (x) 0.3 0.3 0.4 0.4 0.4
Assets/Equity (x) 1.7 1.7 1.6 1.5 1.4
ROAE (%) 26.2 39.2 16.7 19.2 20.5
ROAA (%) 19.1 13.8 14.4 17.2 18.4

Liquidity & Efficiency

Cash conversion cycle nm nm nm nm nm
Days receivable outstanding 74.8 54.9 51.5 52.8 53.0
Days inventory outstanding nm nm nm nm nm
Days payables outstanding 239.6 247.1 207.4 197.8 196.4
Dividend cover (x) nm nm nm nm nm
Current ratio (x) 3.6 2.6 2.1 2.2 2.7

Leverage & Expense Analysis

Asset/Liability (x) 2.6 3.2 3.3 3.4 3.7
Net gearing (%) (incl perps) net cash net cash net cash net cash net cash
Net gearing (%) (excl. perps) net cash net cash net cash net cash net cash
Net interest cover (x) na na na na na
Debt/EBITDA (x) 1.9 1.6 0.9 0.6 0.4
Capex/revenue (%) 10.1 10.7 16.4 8.8 7.6
Net debt/ (net cash) (55,600.0) (49,047.0) (51,879.1) (99,183.2) (200,530.6)
Source: Company; Maybank

June 12, 2017 12

Alibaba Group

Research Offices
REGIONAL HONG KONG / CHINA INDONESIA VIETNAM
Sadiq CURRIMBHOY Howard WONG Head of Research Isnaputra ISKANDAR Head of Research LE Hong Lien, ACCA
Regional Head, Research & Economics (852) 2268 0648 (62) 21 8066 8680 Head of Institutional Research
(65) 6231 5836 sadiq@maybank-ke.com.sg howardwong@kimeng.com.hk isnaputra.iskandar@maybank-ke.co.id (84) 8 44 555 888 x 8181
Strategy Strategy Metals & Mining Cement lien.le@maybank-kimeng.com.vn
WONG Chew Hann, CA Oil & Gas - Regional Strategy Consumer Diversified
Regional Head of Institutional Research Rahmi MARINA
(603) 2297 8686 wchewh@maybank-ib.com Benjamin HO (62) 21 8066 8689 THAI Quang Trung, CFA,
(852) 2268 0632 benjaminho@kimeng.com.hk rahmi.marina@maybank-ke.co.id Deputy Head, Institutional Research
ONG Seng Yeow Consumer & Auto Banking & Finance (84) 8 44 555 888 x 8180
Regional Head of Retail Research trung.thai@maybank-kimeng.com.vn
(65) 6231 5839 Christopher WONG Aurellia SETIABUDI Real Estate Construction Materials
ongsengyeow@maybank-ke.com.sg (852)2268 0652 christopherwong@kimeng.com.hk (62) 21 8066 8691
HK & China Properties aurellia.setiabudi@maybank-ke.co.id LE Nguyen Nhat Chuyen
TAN Sin Mui Property (84) 8 44 555 888 x 8082
Director of Research Jacqueline KO, CFA
chuyen.le@maybank-kimeng.com.vn
(65) 6231 5849 sinmui@kimeng.com.hk (852) 2268 0633 jacquelineko@kimeng.com.hk Pandu ANUGRAH
Oil & Gas
Consumer Staples & Durables (62) 21 8066 8688
ECONOMICS pandu.anugrah@maybank-ke.co.id
Ka Leong LO, CFA NGUYEN Thach Lam
Infra Construction Transport Telcos
(852) 2268 0630 kllo@kimeng.com.hk (84) 8 44 555 888 x 8085
Suhaimi ILIAS thachlam.nguyen@maybank-kimeng.com.vn
Chief Economist Consumer Discretionary & Auto Janni ASMAN
(62) 21 8066 8687 Utilities
Malaysia | Philippines Mitchell KIM
(603) 2297 8682 suhaimi_ilias@maybank-ib.com janni.asman@maybank-ke.co.id
(852) 2268 0634 mitchellkim@kimeng.com.hk Cigarette Healthcare Retail NGUYEN Thi Ngan Tuyen,
CHUA Hak Bin Internet & Telcos Head of Retail Research
Regional Thematic Macroeconomist Adhi TASMIN (84) 8 44 555 888 x 8081
(65) 6231 5830 chuahb@maybank-ke.com.sg Ning MA, CFA (62) 21 8066 8694 tuyen.nguyen@maybank-kimeng.com.vn
(852) 2268 0672 ningma@kimeng.com.hk adhi.tasmin@maybank-ke.co.id Food & Beverage Oil & Gas Banking
LEE Ju Ye Insurance
Singapore Plantations
TRUONG Quang Binh,
(65) 6231 5844 leejuye@maybank-ke.com.sg Ricky NG, CFA Deputy Head, Retail Research
PHILIPPINES
Tim LEELAHAPHAN (852) 2268 0689 rickyng@kimeng.com.hk (84) 4 44 555 888 x 8087
Thailand Regional Renewables Lovell SARREAL binh.truong@maybank-kimeng.com.vn
(66) 2658 6300 ext 1420 HK & China Properties (63) 2 849 8841 Rubber Plantation Tyres and Tubes
tim.l@maybank-ke.co.th lovell_sarreal@maybank-atrke.com Oil & Gas
Sonija LI, CFA, FRM Consumer Media Cement
Saktiandi SUPAAT (852) 2268 0641 sonijali@kimeng.com.hk
Head, FX Research TRINH Thi Ngoc Diep
Gaming Rommel RODRIGO (84) 4 44 555 888 x 8208
(65) 6320 1379 saktiandi@maybank.com.sg (63) 2 849 8839
Stefan CHANG, CFA diep.trinh@maybank-kimeng.com.vn
rommel_rodrigo@maybank-atrke.com Technology Utilities Construction
STRATEGY (852) 2268 0675 stefanchang@kimeng.com.hk Conglomerates Property Gaming
Technology Regional Ports/ Logistics
Sadiq CURRIMBHOY NGUYEN Thi Sony Tra Mi
Tony Ren, MBA, CFA (84) 8 44 555 888 x 8084
Global Strategist Katherine TAN
(852) 2268 0640 tonyren@kimeng.com.hk mi.nguyen@maybank-kimeng.com.vn
(65) 6231 5836 sadiq@maybank-ke.com.sg (63) 2 849 8843 Port Operation Pharmaceutical
Healthcare & Pharmaceutical kat_tan@maybank-atrke.com
Willie CHAN Food & Beverage
Banks Construction
Hong Kong / Regional INDIA
NGUYEN Thanh Lam
(852) 2268 0631 williechan@kimeng.com.hk Jigar SHAH Head of Research THAILAND (84) 4 44 555 888 x 8086
(91) 22 6623 2632 jigar@maybank-ke.co.in Maria LAPIZ Head of Institutional Research thanhlam.nguyen@maybank-kimeng.com.vn
MALAYSIA Technical Analysis
Strategy Oil & Gas Automobile Cement Dir (66) 2257 0250 | (66) 2658 6300 ext 1399
WONG Chew Hann, CA Head of Research Maria.L@maybank-ke.co.th
(603) 2297 8686 wchewh@maybank-ib.com Vishal MODI Strategy Consumer Materials Ind. Estates
Strategy (91) 22 6623 2607 vishal@maybank-ke.co.in
Banking & Financials Sittichai DUANGRATTANACHAYA
Desmond CHNG, ACA (66) 2658 6300 ext 1393
(603) 2297 8680 Sittichai.D@maybank-ke.co.th
desmond.chng@maybank-ib.com Neerav DALAL
(91) 22 6623 2606 neerav@maybank-ke.co.in Services Sector Transport
Banking & Finance
Software Technology Telcos Yupapan POLPORNPRASERT
LIAW Thong Jung
(603) 2297 8688 tjliaw@maybank-ib.com (66) 2658 6300 ext 1395
Vishal PERIWAL yupapan.p@maybank-ke.co.th
Oil & Gas Services- Regional
(91) 22 6623 2605 vishalperiwa@maybank-ke.co.in Oil & Gas
ONG Chee Ting, CA Infrastructure
(603) 2297 8678 ct.ong@maybank-ib.com Tanawat RUENBANTERNG
Plantations - Regional SINGAPORE (66) 2658 6300 ext 1394
Mohshin AZIZ Tanawat.R@maybank-ke.co.th
(603) 2297 8692 mohshin.aziz@maybank-ib.com Neel SINHA Head of Research Banks & Diversified Financials
Aviation - Regional Petrochem (65) 6231 5838 neelsinha@maybank-ke.com.sg
Strategy Vorapoj HONGPINYO
YIN Shao Yang, CPA SMID Caps Regional (66) 2658 6300 ext 1392
(603) 2297 8916 samuel.y@maybank-ib.com Vorapoj.h@maybank-ke.co.th
Gaming Regional Media Gregory YAP
(65) 6231 5848 gyap@maybank-ke.com.sg Real Estate & Contractors
TAN Chi Wei, CFA SMID Caps
(603) 2297 8690 chiwei.t@maybank-ib.com Technology & Manufacturing Telcos Sukit UDOMSIRIKUL Head of Retail Research
Power Telcos (66) 2658 6300 ext 5090
CHUA Su Tye Sukit.u@maybank-ke.co.th
WONG Wei Sum, CFA (65) 6231 5842 chuasutye@maybank-ke.com.sg
(603) 2297 8679 weisum@maybank-ib.com REITs Surachai PRAMUALCHAROENKIT
Property (66) 2658 6300 ext 1470
LEE Yen Ling Derrick HENG, CFA Surachai.p@maybank-ke.co.th
(603) 2297 8691 lee.yl@maybank-ib.com (65) 6231 5843 derrickheng@maybank-ke.com.sg Auto Conmat Contractor Steel
Building Materials Glove Ports Shipping Transport Property REITs (Office)
Suttatip PEERASUB
Ivan YAP John CHEONG, CFA (66) 2658 6300 ext 1430
(603) 2297 8612 ivan.yap@maybank-ib.com (65) 6231 5845 johncheong@maybank-ke.com.sg suttatip.p@maybank-ke.co.th
Automotive Semiconductor Technology Small & Mid Caps Healthcare Media Commerce
Kevin WONG NG Li Hiang
(603) 2082 6824 kevin.wong@maybank-ib.com Sutthichai KUMWORACHAI
(65) 6231 5840 nglihiang@maybank-ke.com.sg (66) 2658 6300 ext 1400
REITs Consumer Discretionary Banks sutthichai.k@maybank-ke.co.th
LIEW Wei Han Energy Petrochem
(603) 2297 8676 weihan.l@maybank-ib.com
Consumer Staples Termporn TANTIVIVAT
(66) 2658 6300 ext 1520
TEE Sze Chiah Head of Retail Research
termporn.t@maybank-ke.co.th
(603) 2082 6858 szechiah.t@maybank-ib.com
Property
Nik Ihsan Raja Abdullah, MSTA, CFTe
(603) 2297 8694 Jaroonpan WATTANAWONG
nikmohdihsan.ra@maybank-ib.com (66) 2658 6300 ext 1404
Chartist jaroonpan.w@maybank-ke.co.th
Transportation Small cap

June 12, 2017 13

Alibaba Group

APPENDIX I: TERMS FOR PROVISION OF REPORT, DISCLAIMERS AND DISCLOSURES

DISCLAIMERS
This research report is prepared for general circulation and for information purposes only and under no circumstances should it be considered or intended as
an offer to sell or a solicitation of an offer to buy the securities referred to herein. Investors should note that values of such securities, if any, may fluctuate
and that each securitys price or value may rise or fall. Opinions or recommendations contained herein are in form of technical ratings and fundamental
ratings. Technical ratings may differ from fundamental ratings as technical valuations apply different methodologies and are purely based on price and
volume-related information extracted from the relevant jurisdictions stock exchange in the equity analysis. Accordingly, investors returns may be less than
the original sum invested. Past performance is not necessarily a guide to future performance. This report is not intended to provide personal investment
advice and does not take into account the specific investment objectives, the financial situation and the particular needs of persons who may receive or read
this report. Investors should therefore seek financial, legal and other advice regarding the appropriateness of investing in any securities or the investment
strategies discussed or recommended in this report.
The information contained herein has been obtained from sources believed to be reliable but such sources have not been independently verified by Maybank
Investment Bank Berhad, its subsidiary and affiliates (collectively, MKE) and consequently no representation is made as to the accuracy or completeness of
this report by MKE and it should not be relied upon as such. Accordingly, MKE and its officers, directors, associates, connected parties and/or employees
(collectively, Representatives) shall not be liable for any direct, indirect or consequential losses or damages that may arise from the use or reliance of this
report. Any information, opinions or recommendations contained herein are subject to change at any time, without prior notice.
This report may contain forward looking statements which are often but not always identified by the use of words such as anticipate, believe, estimate,
intend, plan, expect, forecast, predict and project and statements that an event or result may, will, can, should, could or might
occur or be achieved and other similar expressions. Such forward looking statements are based on assumptions made and information currently available to us
and are subject to certain risks and uncertainties that could cause the actual results to differ materially from those expressed in any forward looking
statements. Readers are cautioned not to place undue relevance on these forward-looking statements. MKE expressly disclaims any obligation to update or
revise any such forward looking statements to reflect new information, events or circumstances after the date of this publication or to reflect the occurrence
of unanticipated events.
MKE and its officers, directors and employees, including persons involved in the preparation or issuance of this report, may, to the extent permitted by law,
from time to time participate or invest in financing transactions with the issuer(s) of the securities mentioned in this report, perform services for or solicit
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investments related thereto. In addition, it may make markets in the securities mentioned in the material presented in this report. One or more directors,
officers and/or employees of MKE may be a director of the issuers of the securities mentioned in this report to the extent permitted by law.
This report is prepared for the use of MKEs clients and may not be reproduced, altered in any way, transmitted to, copied or distributed to any other party in
whole or in part in any form or manner without the prior express written consent of MKE and MKE and its Representatives accepts no liability whatsoever for
the actions of third parties in this respect.
This report is not directed to or intended for distribution to or use by any person or entity who is a citizen or resident of or located in any locality, state,
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under such circumstances as may be permitted by applicable law. The securities described herein may not be eligible for sale in all jurisdictions or to certain
categories of investors. Without prejudice to the foregoing, the reader is to note that additional disclaimers, warnings or qualifications may apply based on
geographical location of the person or entity receiving this report.
Malaysia
Opinions or recommendations contained herein are in the form of technical ratings and fundamental ratings. Technical ratings may differ from fundamental
ratings as technical valuations apply different methodologies and are purely based on price and volume-related information extracted from Bursa Malaysia
Securities Berhad in the equity analysis.
Singapore
This report has been produced as of the date hereof and the information herein may be subject to change. Maybank Kim Eng Research Pte. Ltd. (Maybank
KERPL) in Singapore has no obligation to update such information for any recipient. For distribution in Singapore, recipients of this report are to contact
Maybank KERPL in Singapore in respect of any matters arising from, or in connection with, this report. If the recipient of this report is not an accredited
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liable for the contents of this report, with such liability being limited to the extent (if any) as permitted by law.
Thailand
Except as specifically permitted, no part of this presentation may be reproduced or distributed in any manner without the prior written permission of Maybank
Kim Eng Securities (Thailand) Public Company Limited. Maybank Kim Eng Securities (Thailand) Public Company Limited (MBKET) accepts no liability
whatsoever for the actions of third parties in this respect.
Due to different characteristics, objectives and strategies of institutional and retail investors, the research reports of MBKET Institutional and Retail Research
Department may differ in either recommendation or target price, or both. MBKET Retail Research is intended for retail investors (http://kelive.maybank-
ke.co.th) while Maybank Kim Eng Institutional Research is intended only for institutional investors based outside Thailand only.
The disclosure of the survey result of the Thai Institute of Directors Association (IOD) regarding corporate governance is made pursuant to the policy of the
Office of the Securities and Exchange Commission. The survey of the IOD is based on the information of a company listed on the Stock Exchange of Thailand
and the market for Alternative Investment disclosed to the public and able to be accessed by a general public investor. The result, therefore, is from the
perspective of a third party. It is not an evaluation of operation and is not based on inside information. The survey result is as of the date appearing in the
Corporate Governance Report of Thai Listed Companies. As a result, the survey may be changed after that date. MBKET does not confirm nor certify the
accuracy of such survey result.
The disclosure of the Anti-Corruption Progress Indicators of a listed company on the Stock Exchange of Thailand, which is assessed by Thaipat Institute, is made
in order to comply with the policy and sustainable development plan for the listed companies of the Office of the Securities and Exchange Commission.
Thaipat Institute made this assessment based on the information received from the listed company, as stipulated in the form for the assessment of Anti-
corruption which refers to the Annual Registration Statement (Form 56-1), Annual Report (Form 56-2), or other relevant documents or reports of such listed
company. The assessment result is therefore made from the perspective of Thaipat Institute that is a third party. It is not an assessment of operation and is not
based on any inside information. Since this assessment is only the assessment result as of the date appearing in the assessment result, it may be changed after
that date or when there is any change to the relevant information. Nevertheless, MBKET does not confirm, verify, or certify the accuracy and completeness of
the assessment result.
US
This third-party research report is distributed in the United States (US) to Major US Institutional Investors (as defined in Rule 15a-6 under the Securities
Exchange Act of 1934, as amended) only by Maybank Kim Eng Securities USA Inc (Maybank KESUSA), a broker-dealer registered in the US (registered under
Section 15 of the Securities Exchange Act of 1934, as amended). All responsibility for the distribution of this report by Maybank KESUSA in the US shall be borne
by Maybank KESUSA. This report is not directed at you if MKE is prohibited or restricted by any legislation or regulation in any jurisdiction from making it
available to you. You should satisfy yourself before reading it that Maybank KESUSA is permitted to provide research material concerning investments to you
under relevant legislation and regulations. All U.S. persons receiving and/or accessing this report and wishing to effect transactions in any security mentioned
within must do so with: Maybank Kim Eng Securities USA Inc. 777 Third Avenue 21st Floor New York, New York 1- (212) 688-8886 and not with, the issuer of
this report.
June 12, 2017 14
Alibaba Group

UK
This document is being distributed by Maybank Kim Eng Securities (London) Ltd (Maybank KESL) which is authorized and regulated, by the Financial Conduct
Authority and is for Informational Purposes only. This document is not intended for distribution to anyone defined as a Retail Client under the Financial
Services and Markets Act 2000 within the UK. Any inclusion of a third party link is for the recipients convenience only, and that the firm does not take any
responsibility for its comments or accuracy, and that access to such links is at the individuals own risk. Nothing in this report should be considered as
constituting legal, accounting or tax advice, and that for accurate guidance recipients should consult with their own independent tax advisers.

DISCLOSURES

Legal Entities Disclosures

Malaysia: This report is issued and distributed in Malaysia by Maybank Investment Bank Berhad (15938- H) which is a Participating Organization of Bursa
Malaysia Berhad and a holder of Capital Markets and Services License issued by the Securities Commission in Malaysia. Singapore: This report is distributed in
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(PTMKES) (Reg. No. KEP-251/PM/1992) is a member of the Indonesia Stock Exchange and is regulated by the Financial Services Authority (Indonesia).
Thailand: MBKET (Reg. No.0107545000314) is a member of the Stock Exchange of Thailand and is regulated by the Ministry of Finance and the Securities and
Exchange Commission. Philippines: Maybank ATRKES (Reg. No.01-2004-00019) is a member of the Philippines Stock Exchange and is regulated by the Securities
and Exchange Commission. Vietnam: Maybank Kim Eng Securities Limited (License Number: 117/GP-UBCK) is licensed under the State Securities Commission of
Vietnam. Hong Kong: KESHK (Central Entity No AAD284) is regulated by the Securities and Futures Commission. India: Kim Eng Securities India Private Limited
(KESI) is a participant of the National Stock Exchange of India Limited and the Bombay Stock Exchange and is regulated by Securities and Exchange Board of
India (SEBI) (Reg. No. INZ000010538). KESI is also registered with SEBI as Category 1 Merchant Banker (Reg. No. INM 000011708) and as Research Analyst (Reg
No: INH000000057) US: Maybank KESUSA is a member of/ and is authorized and regulated by the FINRA Broker ID 27861. UK: Maybank KESL (Reg No 2377538)
is authorized and regulated by the Financial Services Authority.

Disclosure of Interest
Malaysia: MKE and its Representatives may from time to time have positions or be materially interested in the securities referred to herein and may further
act as market maker or may have assumed an underwriting commitment or deal with such securities and may also perform or seek to perform investment
banking services, advisory and other services for or relating to those companies.
Singapore: As of 12 June 2017, Maybank KERPL and the covering analyst do not have any interest in any companies recommended in this research report.
Thailand: MBKET may have a business relationship with or may possibly be an issuer of derivative warrants on the securities /companies mentioned in the
research report. Therefore, Investors should exercise their own judgment before making any investment decisions. MBKET, its associates, directors, connected
parties and/or employees may from time to time have interests and/or underwriting commitments in the securities mentioned in this report.
Hong Kong: As of 12 June 2017, KESHK and the authoring analyst do not have any interest in any companies recommended in this research report.
India: As of 12 June 2017, and at the end of the month immediately preceding the date of publication of the research report, KESI, authoring analyst or their
associate / relative does not hold any financial interest or any actual or beneficial ownership in any shares or having any conflict of interest in the subject
companies except as otherwise disclosed in the research report.

In the past twelve months KESI and authoring analyst or their associate did not receive any compensation or other benefits from the subject companies or
third party in connection with the research report on any account what so ever except as otherwise disclosed in the research report.
MKE may have, within the last three years, served as manager or co-manager of a public offering of securities for, or currently may make a primary market
in issues of, any or all of the entities mentioned in this report or may be providing, or have provided within the previous 12 months, significant advice or
investment services in relation to the investment concerned or a related investment and may receive compensation for the services provided from the
companies covered in this report.

OTHERS
Analyst Certification of Independence
The views expressed in this research report accurately reflect the analysts personal views about any and all of the subject securities or issuers; and no part
of the research analysts compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in the report.

Reminder
Structured securities are complex instruments, typically involve a high degree of risk and are intended for sale only to sophisticated investors who are
capable of understanding and assuming the risks involved. The market value of any structured security may be affected by changes in economic, financial
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consult with its own professional advisers as to the risks involved in making such a purchase.

No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of MKE.

June 12, 2017 15

Alibaba Group

Historical recommendations and target price: Alibaba Group (BABA US)

14 Dec 29 Jan 2 Mar 6 May 12 Aug 26 Sep 3 Nov 25 Jan 19 May 9 Jun
Buy : $109.0 Buy : $110.0 Buy : $104.0 Buy : $103.0 Buy : $110.0 Buy : $130.0 Buy : $129.0 Buy : $134.0 Buy : $150.0 Buy : $167.0

160.0

140.0

120.0

100.0

80.0

60.0
Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17

Alibaba Group

Definition of Ratings
Maybank Kim Eng Research uses the following rating system
BUY Return is expected to be above 10% in the next 12 months (excluding dividends)
HOLD Return is expected to be between - 10% to +10% in the next 12 months (excluding dividends)
SELL Return is expected to be below -10% in the next 12 months (excluding dividends)

Applicability of Ratings
The respective analyst maintains a coverage universe of stocks, the list of which may be adjusted according to needs. Investment ratings are only
applicable to the stocks which form part of the coverage universe. Reports on companies which are not part of the coverage do not carry investment
ratings as we do not actively follow developments in these companies.

June 12, 2017 16

Alibaba Group

Malaysia Singapore London New York

Maybank Investment Bank Berhad Maybank Kim Eng Securities Pte Ltd Maybank Kim Eng Securities Maybank Kim Eng Securities USA
(A Participating Organisation of Maybank Kim Eng Research Pte Ltd (London) Ltd Inc
Bursa Malaysia Securities Berhad) 50 North Canal Road PNB House 777 Third Avenue, 21st Floor
33rd Floor, Menara Maybank, Singapore 059304 77 Queen Victoria Street New York, NY 10017, U.S.A.
100 Jalan Tun Perak, London EC4V 4AY, UK
50050 Kuala Lumpur Tel: (65) 6336 9090 Tel: (212) 688 8886
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Stockbroking Business: Hong Kong Indonesia India

Level 8, Tower C, Dataran Maybank,
Kim Eng Securities (HK) Ltd PT Maybank Kim Eng Securities Kim Eng Securities India Pvt Ltd
No.1, Jalan Maarof Level 30, Sentral Senayan III, 22nd Floor 2nd Floor, The International,
59000 Kuala Lumpur
Three Pacific Place, Jl. Asia Afrika No. 8 16, Maharishi Karve Road,
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Fax: (603) 2282 5136
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Tel: (852) 2268 0800 Tel: (62) 21 8066 8500 Tel: (91) 22 6623 2600
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Philippines Thailand Vietnam Saudi Arabia

Maybank ATR Kim Eng Securities Inc.
17/F, Tower One & Exchange Plaza
Ayala Triangle, Ayala Avenue
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Tel: (63) 2 849 8888
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Maybank Kim Eng Securities
(Thailand) Public Company Limited
999/9 The Offices at Central World,
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South Asia Sales Trading North Asia Sales Trading

Kevin Foy Andrew Lee
Regional Head Sales Trading andrewlee@kimeng.com.hk
kevinfoy@maybank-ke.com.sg Tel: (852) 2268 0283
Tel: (65) 6636-3620 US Toll Free: 1 877 837 7635
US Toll Free: 1-866-406-7447

Malaysia Thailand
Joann Lim Tanasak Krishnasreni
joann.lim@maybank-ib.com Tanasak.K@maybank-ke.co.th
Tel: (603) 2717 5166 Tel: (66)2 658 6820

Indonesia London
Harianto Liong Scott Kinnear-Nock
harianto.liong@maybank-ke.co.id SKinnear-nock@maybank-ke.co.uk
Tel: (62) 21 2557 1177 Tel: (44) 207-332-0221

New York India

Andrew Dacey Manish Modi
adacey@maybank-keusa.com manish@maybank-ke.co.in
Tel: (212) 688 2956 Tel: (91)-22-6623-2601

Vietnam Philippines
Patrick Mitchell Keith Roy
patrick.mitchell@maybank-kimeng.com.vn keith_roy@maybank-atrke.com
Tel: (84)-8-44-555-888 x8080 Tel: (63) 2 848-5288
www.maybank-ke.com | www.maybank-keresearch.com

June 12, 2017 17