HK Stock Market Move | ALI HEALTH (00241) dropped more than 4%, Goldman Sachs predicts that increased investments in AI and pharmaceuticals will impact the company's profits.

ALI HEALTH (00241) fell more than 4%, dropping 4.08% to 4.7 Hong Kong dollars as of press time, with a turnover of 4.44 billion Hong Kong dollars. On the news front, Goldman Sachs released a research report stating that they have lowered the target price of ALI HEALTH from 5.2 Hong Kong dollars to 4.8 Hong Kong dollars, with a rating of "Neutral", to reflect the impact of increased investments in AI and pharmaceutical categories on profitability. The report noted that ALI HEALTH's stock price has only dropped 3% since the beginning of the year, outperforming the 11% drop of the Hang Seng Technology Index, mainly due to growth expectations and the potential of AI in healthcare. However, the bank expects the company's profits to slightly decline in the second half of the year, reversing the trend of profit expansion in the first half, mainly due to increased investment in AI programs and increased discounts on original pharmaceuticals to cope with competition. The expectations for AI investments are expected to continue until the fiscal year 2027.