CICC International: Maintains "Outperform" rating on ALI HEALTH (00241) with a target price raised to HKD 4.8.

Industrial Bank International released a research report stating that they have raised the target price of ALI HEALTH (00241) from 4.4 Hong Kong dollars to 4.8 Hong Kong dollars, an increase of 9.09%, while maintaining a "outperform" rating. This is mainly due to the increased contribution from e-commerce platform sales and non-drug merchandise gross merchandise volume (GMV) sales. The bank has raised their earnings forecast for the fiscal years 2025-2027 by 9.2% due to an increase in overall gross profit margin forecast by 0.7 percentage points. The report states that the group's platform business is experiencing strong growth. In the first half of 2025, sales increased by 10.2% year-on-year to 14.3 billion yuan (same below), slightly lower than the bank's expectations of 15.2 billion yuan. E-commerce business increased by 67.5% year-on-year to 1 billion yuan, higher than the bank's expectations of 1.4 billion yuan. The gross profit margin rose by 3.3 percentage points to 24.8% compared to the previous quarter, higher than the bank's expectation of 23.8%. Adjusted net profit increased by 52% year-on-year to 977 million yuan, slightly lower than the bank's expectation of 1 billion yuan. The bank believes that the group's transition to non-pharmaceutical products will accelerate business growth. Closer collaboration with merchants will help the e-commerce platform business maintain annual growth of over 40% in the second half of fiscal year 2025.