JPMorgan predicts that Alibaba operating profit margin to fall to 31% in 2009

According to estimates made by US financial services provider JPMorgan, China-based B2B e-commerce company Alibaba is to witness a decline in its operating profit margin from 44 percent in 2008 to 31 percent in 2009.

Such a decrease reflects the fact that the economic crisis is set to affect the company's performance, according to the US bank. Nevertheless, forecasts indicate that Alibaba has enough potential (no debt, USD 893 million in cash and bank deposits and 67 percent of the market) to survive the recession and even recover economically.

In related news, Interfax China reports that in 2008, Alibaba initiated a restructuring program, by merging China Yahoo with search engine Koubei to form the Alibaba subsidiary Yahoo Koubei, and integrating advertising sales service Alimama with its consumer-to-consumer e-commerce platform Taobao. The restructuring is expected to lead to the closure of non-profitable interests, following the closure of the NCP online community operated by Yahoo Koubei.

At the beginning of 2009, Alibaba has announced that it is considering expanding its business globally and offering its services to small- and medium-sized companies outside of China.