奥门金沙手机娱乐网址，High on FDI: While still below most of its ASEAN peers, foreign direct investment(FDI) to the Philippines has steadily grown over the past three years, reaching arecord high of around USD8bn in 2016, up from just below USD6bn in each of theprevious two years. As such, the reasonable expectation earlier this year was for FDIto continue to grow, especially in light of the government’s push for greaterinfrastructure spending and other reforms. Indeed, the Department of Trade andIndustry expected FDI to reach between USD10bn and USD11bn for 2017.
Fast growth at impressive scale. Alibaba continues to execute flawlessly, growingrapidly in its core China Retail business with resilient margins, while expanding cloudand investing in future growth. In particular, excluding Intime and Hema, China Retailcustomer management and commission revenue grew 57% y-o-y to RMB37bn(USD5.6bn) and Core Commerce EBITDA margins were 57%. Tmall GMV grew 49%y-o-y, with accelerating growth in consumer electronics and FMCG. Alibaba launched88Loyalty Membership to reward those who spend time and money on Tmall andTaobao. Alibaba Cloud added 245new products in the quarter, mostly aimed at largeenterprises. In New Retail, it has already integrated Intime’s customer data and willintegrate all its merchandise products to enable a seamless online and offlineexperience. Hema has reached 20stores and future growth will come fromfranchising this new retail format for fresh food experiences. In October, Alibaba tookcontrol of Cainiao, its logistics data platform, and will invest USD15bn over 5years toestablish a global logistics infrastructure to support international growth. Alibaba willalso invest USD15bn in the next 3years on fundamental research to distance itselffrom competitors, which was already in our forecasts.
Back to reality: However, FDI to date has been far below expectations. Net FDI asof July was less than USD4bn, down 16.5% YTD y-o-y. More strikingly, total newequity investments (new FDI) have seemingly “fallen off a cliff” and are down 81.5%YTD y-o-y. The other components of net FDI – reinvested earnings and intracompanyloans from parent firms abroad (debt instruments) – are also growing at aconsiderably slower pace than last year.
Impressive results and higher guidance. Total revenue grew 61% y-o-y toRMB55bn (USD8bn) in 2QFY18, 5% ahead of expectations. Non-GAAP EBITDAmargins were 45%, versus our estimate of 40%, with Product Development and G&Aexpenses lower than expected. Non-GAAP EPS of RMB8.57was 27% higher thanconsensus. Specifically, Core Commerce grew 63% y-o-y, driven by China, Intimeand International. Mobile MAUs grew by 20m q-o-q to 549m while annual activebuyers reached 488m, up 22m q-o-q. Customer management revenue increased58% y-o-y as both consumers and merchants spent more. Commission revenue grew47% y-o-y due to Tmall GMV. Cloud revenue increased 99% y-o-y to RMB3bn, withEBITA margins of -4%. Free cash flow was USD3.4bn, up 62% y-o-y. Managementraised FY2018revenue guidance to 49-53% y-o-y growth (from 45-49%), to reflectCainiao, which will be consolidated in FY3Q18.