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Alibaba Group Holding Ltd (BABA) Tops Forbes Asia ‘Fab 50’ List

Alibaba (NASDAQ:BABA)

Alibaba Group Holding Ltd is a slightly difficult business for investors to understand. Not many have a clear picture of what the firm is exactly up to. In fact, this year’s corporate analyst meeting was the first such meeting held in the firm’s history.

The firm has just begun to better explain itself to investors. It has always been considered a firm that is “hard-to-fathom,” says Barron’s. However, those who are in the know have obviously done their homework about evaluating the firm’s prospects. Rob Sanderson of MKM broke the business into its many components for his valuation. He holds the firm belief that there is plenty of upside to see.

Alibaba Group Holding Ltd (NYSE:BABA)

Alibaba Group Holding Ltd Gets Praise from Analysts

MKM states that Ant Financial adds $8 per share to Alibaba’s worth. Ant is an online payment processor and bank that is sometimes compared to Paypal. Alibaba owns 33% of the firm. Many expect Ant to go public in the first half of 2017. It has recently been valued at around $60 bn. As per Sanderson, the mark-to-market value of the publicly-traded firms in Alibaba’s portfolio has been valued at around $13 bn. This makes up $5 per share of its valuation. Another $5 per share is added to MKM’s valuation by digital media and cash.

The firm also has a promising future in cloud computing. It is uniquely positioned because it entered new segments and has a different perception of e-commerce, states The Country Caller. Jack Ma made a move into e-sports and aligned VR with e-commerce, making it easier for customers to make choices. Morgan Stanley analysts see the Beijing-based retailer as one of the best picks for long-term returns.

ValueWalk also reports that the firm has topped the Forbes Asia’s Fab 50 list. Alibaba debuted at the top on this year’s Forbes Asia’s Fabulous 50 List of the best publicly-traded big firms. The list, which was released recently, included thousands of other firms. Alibaba Group Holding Ltd  had the highest market value of them and also surpassed others in a range of metrics. Forbes reported that there were 21 new entrants in this year’s list. Being able to make it onto the list is considered to be an honor. It recognizes the brightest stars in the business in the Asia Pacific region. This is the 12th edition of the Fab 50 list showing the changing nature of business in the region. About 272 firms have been successful at making it to the list at least once.

In 2005, the firm released its inaugural list, which included five telecom firms. This year, there wasn’t even one on the list. Also there were 11 tech hardware firms in the inaugural list. This year only six could make it onto the list. During the first three years of the list, there were no property developers on the roster. But since then, they have made remarkable improvements and are well represented now. For six consecutive years, Chinese firms have been dominating the list. Alibaba qualified for the list for the first time this year. It was due to the firm meeting the criteria of being a publicly traded firm for at least a year. With its market cap of $242.5 bn, Alibaba replaced last year’s most valuable firm, Tencent. The latter is now worth $233.2 bn and came in second on the list.

Many American vendors see Alibaba as a proxy for the health of the Chinese economy. They also see the firm’s results as a sign of the strength of China’s consumers. The firm has outperformed the broader retail market in China. It also invests in the growth of e-commerce in the country with a focus on logistics. The firm also has interests in rural areas where fewer people are online. This way it can continue to grow even as the country’s economy slows.

Alibaba Gets Things Moving in Logistics

‘News Is Money’ reports that Baozun Inc. has declared the launch of Baotong E-logistics (“Baotong”). Baozun is the leading brand e-commerce solutions provider in China. Baotong will be a wholly-owned warehousing and logistics solutions partner. Baozun is backed by Alibaba Group Holding Ltd , which has a 20% stake in the firm. Baotong will further strengthen and expand the scale of the firm’s diversified range of warehousing and fulfillment services. It will also improve its ability to serve a larger number of brand partners.

Baotong will serve as a separate logistics entity that will provide warehousing and fulfilment services to brand partners. It will start with the administration and operation of Baozun’s seven distribution centers with an aggregate gross floor area of around 180,000 square meters. Final adjustments are presently being made to Baotong’s first premium warehouse, the Baotong Cube, which is expected to officially begin operations this month. The new premium warehouse will be highly automated, significantly improve operational efficiency, provide brand partners with a more customizable solution and support Baozun’s long-term growth by strengthening and expanding the scale of its logistical capabilities.

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Based in Saudi Arabia, Siraj has a strong understanding of and passion for accounting and finance. He has worked for international clients for many years on several projects related to the stock market, equity research and other business, accounting and finance related projects. Siraj is a published financial analyst on the world's leading websites including SeekingAlpha, TheStreet, MSN, and others.

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