HK Stock Market Move | ALI HEALTH (00241) fell more than 5%. Morgan Stanley pointed out that its sales growth visibility is still low, and reduced its target price by 13%.

ALI HEALTH (00241) stock price has fallen for two consecutive days, dropping by 5.45% to HK$3.82 as of the time of writing, with a trading volume of HK$3.22 billion. In terms of news, ALI HEALTH recently released its interim performance for the six months ending September 30, 2024. The group achieved a revenue of RMB 14.274 billion, a year-on-year increase of 10.2%; the net profit attributable to the parent company amounted to RMB 769 million, a year-on-year increase of 72.45%. A Macquarie research report pointed out that ALI HEALTH's revenue for the first half of the fiscal year ending in September met expectations, with profits exceeding expectations, mainly benefiting from improved gross profit margins. During the period, the e-commerce advertising business grew rapidly, driving up the overall platform commission rate and benefiting the overall gross profit margin performance. However, Macquarie believes that the visibility of the company's sales growth and overall demand for medical products remains weak. The bank has lowered its revenue forecasts for ALI HEALTH for the current and next fiscal years by 7% and 8% respectively, while adjusting the profit forecast for the current fiscal year upwards by 11% to reflect the better profit performance in the first half of the fiscal year. However, the profit forecast for the next fiscal year has been lowered by 8%. As a result, the target price for the company has been reduced by 13% to HK$3.4, with a "underperform" rating being maintained.