CCB International issued a research report maintaining Alibaba's (09988, BABA.US) Hong Kong stock target price at HK$200.7, while also maintaining its US stock target price, with both carrying an "Outperform" rating. CCB International believes that BABA-W's cloud business shows good growth visibility, primarily benefiting from strong AI demand and the company's commitment to AI capital expenditure. Despite increased investments, the firm expects the company's cloud business adjusted EBITDA margin to remain stable at 8.8% quarter-over-quarter for the September quarter. The firm anticipates faster year-over-year revenue growth of 3.5% to RMB254 billion for the September quarter, mainly benefiting from accelerated Customer Management Revenue (CMR) growth of 30%. The firm's revenue forecast for the company is 0.6% above institutional consensus. Regarding profits, given the company's aggressive investments in Quick Commerce (QC) and AI, the decline in China e-commerce and other businesses as well as adjusted net profit exceeded the firm's previous expectations. Increased investments may impact short-term profitability, but will position BABA-W well to capture structural AI opportunities and achieve synergies between Alibaba and its major market businesses, thereby consolidating its long-term growth objectives.