Macquarie: Maintains "underperform" rating on ALI HEALTH (00241), lowers target price to HK$3.4

Morgan Stanley has released a research report stating that they will maintain a "underperform" rating for ALI HEALTH (00241), and have lowered their revenue forecasts for the current and next fiscal year by 7% and 8% respectively. However, they have raised their profit forecast for the current fiscal year by 11% to reflect the better-than-expected profit performance in the first half of the fiscal year. The profit forecast for the next fiscal year has been lowered by 8%, and the target price has been lowered by 13% to 3.4 Hong Kong dollars. The report mentions that ALI HEALTH's revenue for the first half of the fiscal year ending in September met expectations, and profits exceeded expectations, mainly due to improvements in gross profit margin. 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, visibility on the company's sales growth and overall demand for medical products remains subdued.