UOB Kay Hian’s Julia Pan has maintained her “buy” rating on Alibaba with an unchanged target price of US$378 ($508.30), representing a 27.8% upside on the counter after the group posted strong 2QFY2021 results.

Revenue increased by 30% y-o-y to RMB155.1 billion ($31.5 billion) in 2QFY2021, and non-GAAP (or non-generally accepted accounting principles) net profit came in at RMB47.1 billion, up 44% y-o-y, beating the brokerage’s and consensus estimates by 25% and 23% respectively.

Non-GAAP earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 28% y-o-y. EBITDA margin was flattish at 31% y-o-y. 

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