Ali Health (00241) fell by more than 4%. As of press release, it was down 4.23% to HK$2.94, with a turnover of HK$98.481,600.
The Zhitong Finance App learned that Ali Health (00241) fell by more than 4%. As of press release, it was down 4.23% to HK$2.94, with a turnover of HK$984.816 million.
According to the news, HSBC Research published a research report saying that after the restart of Alibaba Health's online drug sales business, there was a slowdown in sales. In recent years, the company actively optimized its product portfolio and eliminated products with low profit margins, which also had a negative impact on sales. Coupled with the drag of falling transaction volume for related products after the pandemic, the company's sales performance for the second half of the fiscal year ending the end of March this year is expected to be disappointing, and long-term prospects may face challenges.
Furthermore, Lyon published a research report saying that the target price for Ali Health was lowered from HK$5.6 to HK$4.1, maintaining the “buy” rating. The bank expects Alibaba Health to face a higher base effect than expected in the second half of fiscal year 2024. Revenue is expected to fall 19% year on year, and adjusted net profit is expected to drop 12% year on year. The bank indicated that Alibaba Health's business growth should be normalized in February of this year. Revenue and adjusted net profit for fiscal year 2025 are expected to increase by more than 16% and 70% respectively, benefiting from Ali Mama's advertising platform sharing advertising revenue.