China Merchants Securities (Hong Kong) has reiterated its 'Buy' recommendation for Alibaba, establishing a target price of US$204 per share. For the September quarter, Alibaba's revenue witnessed a 5% year-on-year uptick (a 15% increase when excluding the impact of Gaoxin and Intime). Notably, its cloud business experienced a robust 34% year-on-year growth, surpassing market expectations, while its Customer Management Revenue (CMR) business maintained a stable performance. Although EBITA (Earnings Before Interest, Taxes, and Amortization) saw a decline owing to investments in instant retail, Alibaba's long-term competitive edge has been further solidified. The strong demand for AI (Artificial Intelligence) has spurred an increase in capital expenditures. In the cloud sector, Alibaba stands out with its comprehensive full-stack layout and commands an approximate 36% market share. Moreover, the number of 88VIP members has soared past 56 million, significantly boosting user loyalty. Relying on the Sum-of-the-Parts (SOTP) valuation method, China Merchants Securities (Hong Kong) maintains its target price of US$204 for Alibaba, designating it as the premier choice among Chinese internet stocks.