HK Stock Market Move | ALI HEALTH (00241) falls more than 3% to create a new low of over one year. Several major banks have lowered their target prices after earnings.

ALI HEALTH (00241) fell by more than 3%, reaching a new low since April last year at 4.08 Hong Kong dollars. As of the time of writing, it has dropped by 3.54% to 4.09 Hong Kong dollars with a trading volume of 4.99 billion Hong Kong dollars. In terms of news, ALI HEALTH recently announced its full-year performance for the year ending March 31, 2026, with total revenue of approximately 34.255 billion yuan, a year-on-year growth of 12.0%; net profit of approximately 1.9363 billion yuan, a year-on-year growth of 35.2%; and adjusted net profit of 2.3262 billion yuan, a year-on-year growth of 19.3%. UBS believes that ALI HEALTH's 2026 fiscal year performance did not meet expectations, and due to increased investments in artificial intelligence and the supply chain, the adjusted net profit guidance for the 2027 fiscal year is lower than market expectations. The bank believes that the company's profitability visibility has decreased, maintaining a "sell" rating and lowering the target price from 4.1 Hong Kong dollars to 3.6 Hong Kong dollars. Lyon also stated that innovative drugs continue to be a strategic growth driver for ALI HEALTH, but profits may decline due to continued investments in innovative drugs and medical artificial intelligence. The company's investment in medical artificial intelligence is for a period of three years. To reflect the related investments, Lyon lowered its adjusted net profit forecast for ALI HEALTH for the fiscal years 2027 to 2028 by 23%, and correspondingly lowered the target price from 5.3 Hong Kong dollars to 4.7 Hong Kong dollars. In addition, Citibank lowered ALI HEALTH's target price from 9 Hong Kong dollars to 8 Hong Kong dollars, maintaining a "buy/high risk" rating, but still holds a long-term optimistic view on ALI HEALTH and considers it as a preferred choice.