OT BABA Logistics

The logistics unit of Chinese tech giant Alibaba (NYSE:BABA), Cainiao, is continuing to invest in technology and expand its services and cross-border network, providing more use for its customers, investment firm Bank of America said on Thursday.

Analyst Eddie Leung, who has a buy rating on Alibaba (BABA) and a $156 price target, noted that during its Open Week held last month, Cainiao highlighted several features, including its cross-border infrastructure, with six global logistics hubs and a network of 200 partners spread across 30 countries and regions. It also has 80 weekly flights and smart customs services across 50 ports that are “capable of supporting express service in 200 countries/regions” and a max collection of more than 12M packages.

Leung added that Cainiao is likely to reach a daily volume of 5M packages, becoming the fourth-largest in the world behind DHL, FedEx (FDX) and UPS (UPS).



It’s interesting BOA spend so much time writing a research on a division of baba. This make me wonder are they trying to get some M&A business? Is this an indication that cainiao could have an ipo?

The research says cainiao could reach 5m package per day. UPS is doing 15m package per day and has a mktcap of 177B.