HSBC Research lowers TapTap's target price to HKD 3.3, and reduces profit forecast.

Golden Ten Data, August 14, HSBC Global Research published a report stating that Taobao (06110.HK)'s total retail goods transaction volume (GMV) for the first quarter of the 2025 fiscal year fell by a single-digit percentage year-on-year, lower than its rise sales target. The bank believes that the year-on-year decline in retail GMV for Taobao’s second quarter of the 2025 fiscal year may further expand, and the weakness of offline traffic will continue for the remainder of this year. Therefore, the bank revised down Taobao’s 2025 fiscal year revenue forecast by 10%, a 5% decrease from the same period last year; net profit forecast was revised down by 13.7%, a 9.6% decrease from the same period last year. The bank also revised down Taobao’s net profit forecast from 7.1% to 1.7% for the 2025 to 2027 fiscal years; the forecast for the average annual compound rise rate of income was revised down from 5.2% to 2.5%. Based on the downward revision of Taobao’s profit forecast and its higher weighted average cost of capital, HSBC lowered Taobao’s target price from 5.6 Hong Kong dollars to 3.3 Hong Kong dollars and maintained a hold rating.