Dahua Jixian: Ali Health (00241) lowers target price to 6 Hong Kong dollars, lower earnings forecast reflects increased investment in innovative drugs and AI.

Dahua Jixian released a research report stating that ALI HEALTH (00241) reaffirmed its revenue growth target for fiscal year 2026 to be an annual increase of 10% to 15%, while adjusting its net profit growth target from 20% to 30% to 10% to 20% due to increased investment in innovative drugs and AI. The bank has revised the group's adjusted net profit growth expectation for fiscal year 2026 from 25% to 15%, while maintaining a compound annual growth rate of revenue and adjusted net profit for fiscal years 2026-2028 at 13% and 24% respectively, primarily driven by the strong momentum of innovative drugs, the deepening synergies with Alibaba, and the expanding application of AI. The bank maintains a "buy" rating but lowers the target price from HK$7.8 to HK$6.