ALIBABA.COM Ltd, owner of China's biggest trading Website for companies, doubled first-quarter profit, beating analysts' estimates, as more businesses used the Internet to buy and sell products ranging from toys to shoes.

Net income climbed to 300.7 million yuan (US$43 million) from 142.1 million yuan a year earlier, the company said in a statement yesterday. That beat the highest of three analysts' estimates compiled by Bloomberg News.

Alibaba added 36 percent more paying users to its Website, which connects almost 30 million businesses that buy and sell goods to each other. The Hangzhou-based company also began working with Infomedia India Ltd to lure users in the south Asian nation and will form a venture with Softbank Corp within "weeks" to help Chinese exporters win orders in Japan.

"The market will be positive on Alibaba expanding into India and Japan because it will help them find more growth," said Kenny Tang, research director at Tung Tai Securities Co in Hong Kong. "Alibaba needs 100 percent profit increases to justify the stock's high valuation," said Tang, who recommends investors buy the shares.

First-quarter earnings rose to 6.47 HK cents a share from 2.96 HK cents a year earlier, Alibaba said. Sales climbed 53 percent to 680 million yuan. Three analysts' estimates had a median of 263 million yuan in profit and 672 million yuan in sales.

Alibaba rose 1.1 percent to HK$15.40 (US$1.98) yesterday in Hong Kong before the earnings release. The stock has dropped 44 percent this year, versus a 5.6-percent fall for the Hang Seng Index.

Its stock trades at 56.8 times estimated 2008 earnings, according to data. Yahoo! Inc, the biggest shareholder of Alibaba's parent, trades at 47.5 times estimated earnings.