HK Stock Market Move | ALI HEALTH(00241) continued to drop by over 3%, with revenue for the fiscal year 2026 falling below market expectations. Continued investments will put pressure on the company's profit margins.

ALI HEALTH (00241) fell more than 3%, down 2.93% to 3.98 Hong Kong dollars as of the time of publication with a trading volume of 215 million Hong Kong dollars. On the news front, UBS pointed out that ALI HEALTH's performance for the fiscal year 2026 fell below expectations and adjusted net profit guidance for fiscal year 2027 is lower than market expectations due to increased investments in artificial intelligence and the supply chain. ALI HEALTH management has upgraded its business strategy and will focus on innovation drugs by integrating B2C and O2O businesses and developing medical AI. UBS believes that focusing on drugs may support revenue growth, but the increase in revenue from first-party products and first-party drug sales, as well as ongoing investments, will suppress profit margins. Credit Suisse stated that the company's management has given a low double-digit revenue growth guidance for fiscal year 2027, with drug sales growth in the high double digits, which is in line with Credit Suisse's expectations. The bank believes 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.