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Patience Is Required For Alibaba And JD.com (guestpost)

Patience Is Required For Alibaba And JD.com (guestpost)

This post was originally posted here. The writer, Brian Halim is a veteran community member and blogger on InvestingNote, with a username known as @3Fs and has 2,000+ followers.

I thought I’ll pen down my thoughts after receiving a number of emails this week from various sources asking for guidance on two big China cap names – Alibaba and JD.com – both of which have seen shares plummeting each day for the past few consecutive weeks.

Many readers would also know that I own Alibaba shares from my last monthly update and have also recently written a piece on JD analysis so it’s something which I’ll walk the talk.

Alibaba Group Holding Ltd (NYSE: Baba)

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Let’s start with Baba first.

This is probably the most hated large cap company right now in the entire planet.

The entire saga started when the intention to list Ant IPO was shelved and the State Administration for Market Regulators went to investigate the entire company’s holding structure.

Since then, the State of Administration has concluded by fining the company US$2.8billion – which the company chose to take in the Q4 FY2021 report announced last night.

The entire saga has shed the company 37% (more than 1/3) of its market cap from the peak – which in my opinion is a bit overdone. The RSI indicator confirmed the same by showing that the counter is currently in oversold territory.

If we look at the results announced yesterday, total revenue for the quarter was RMB 717 billion, an increase of 41% year on year.

The growth was driven by robust revenue growth of the China commerce retail business (Taobao, Tmall) and the continued growth of its cloud computing business.

Total adjusted EBITDA was RMB 170 billion, which is an increase of 24% year on year. There was the one-off adjustment from the anti-monopoly fine which was taken in the quarter, so it pushed the net comprehensive income for the quarter to negative loss territory.

Cash position remains solid at RMB 479 million with free cash flow coming in strongly at 32% to RMB 173 million.

During the conference call held yesterday, management has reiterated its intention to continue investing in R&D and also new seed of businesses such as Taobao Deals (which aims for the lowest of the market segment tiers), Taobao Grocery, Freshippo supermarket (which is the community marketplace business) and new features on the core platform such as Taobao Live and short-form video. The company is also enhancing its logistics arms, CaiNiao to give its competitors such as JD a good run for their money.

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Amazon Prime in Singapore: A Game Changer?

Amazon Prime in Singapore: A Game Changer?

Amazon Prime is slated to change the retail scene in Singapore. Or will it?

This column is written by @j_chou from InvestingNote.com.

@J_chou has an interest in global macro trends, financial markets and equity research and enjoys applying a combination of the three in his investments. His eventual investing goal is to manage a risk parity portfolio and achieve true financial freedom.

@J_Chou is vested in $BABA

Singapore and Southeast Asia’s growing E-commerce industry

According to a 2015 report done by Google and Temasek Holdings South-east Asia’s Internet economy is expected to surge to US$200 billion by 2025, driven by a growing middle class and greater accessibility to the Internet. For Singapore, the e-commerce market is projected to grow at 32% CAGR to be worth US$5.4billion in 2025. The Prime Now launch reaffirmed the importance of South-east Asia for digital commerce, with Singapore chosen as a testbed likely due to its tech-savvy, affluent citizens and accessibility to the rest of the region.

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Amazon Is Coming To Singapore: What You Need To Know

Amazon Is Coming To Singapore: What You Need To Know

Update: Amazon’s launch is official. Amazon has made its way into Singapore.

Amazon Prime Now app is now available for download on the app stores.

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From The Straits Times news, Amazon is using Singapore as a gateway to enter the Southeast Asian market.

The launch, according to the portal, will see services such as Amazon Prime, Amazon Prime Now fast delivery and Amazon’s e-commerce services made available to Singapore’s population, which numbers over five million people.

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