CICC has issued a research report reaffirming its ‘Outperform Industry’ rating for Alibaba, with a target price set at HKD 197. Alibaba has announced the formation of the Alibaba Token Hub (ATH) business division, which will be directly overseen by CEO Wu Yongming. This new division is dedicated to the development, distribution, and implementation of Tokens, encompassing five key business sectors. Its mission is to dismantle barriers within the AI sector, foster internal strategic alignment, and leverage its strengths to expedite the creation of a commercialization ecosystem (closed loop). By doing so, it aims to boost resource efficiency and solidify AI’s central role. The ATH division will utilize Tokens as its cornerstone to broaden consumer (C-end) and business (B-end) applications, thus accelerating the AI commercialization journey. Additionally, the report underscores potential challenges, including macroeconomic and regulatory uncertainties, heightened competition, and the risk of AI advancements not meeting expectations.