Goldman Sachs: Rated ALI HEALTH(00241) as "buy" with a target price of 4.4 Hong Kong dollars.

Goldman Sachs has released a research report stating that ALI HEALTH (00241) has a "buy" rating with a target price of 4.4 Hong Kong dollars. The bank expects investors to focus on the company's recent growth in GMV (Gross Merchandise Volume), guidance on revenue and profit for the second half of the fiscal year, potential for gross margin expansion and long-term goals, industry dynamics, policy updates on medical insurance reimbursement, and capital allocation strategy for 2025. The report notes that as of the end of September, ALI HEALTH's mid-term revenue increased by 10% year-on-year to 14.3 billion RMB, slightly below expectations. Adjusted net profit reached 978 million RMB, surpassing the bank's and market's expectations, with a net profit margin of 6.8%. The bank points out that company sales have relatively slowed down, especially in 1P sales; operating profit margins exceeded expectations, with over 300 million annual active consumers in the past 12 months, roughly in line with the second half of the previous fiscal year. The company has set a target of 5% to 5.5% for net profit margin for the fiscal year 2025, and progress towards this goal is on track in the mid-term.