UBS: Lowers ALI HEALTH (00241) target price to HK$2.8, maintains "Sell" rating.

UBS issued a report lowering ALI HEALTH's (00241) target price from HK$3.1 to HK$2.8, maintaining a "Sell" rating; the new target price is based on 17x FY2028 adjusted earnings per share, down from 19x previously, slightly below the internet healthcare peer average, to reflect the company's weaker earnings growth prospects. The bank now forecasts the company's FY2027 revenue growth at 7-10%, down from its previous forecast of 10-15%, mainly reflecting industry challenges that have slowed growth in the health supplements and medical devices businesses, as well as the company's reduction of price discounts. The bank also lowered its earnings per share forecasts, slightly below the peer average forecasts, with FY2027 and FY2028 EPS estimates at RMB0.13 and RMB0.15 respectively, versus RMB0.14 and RMB0.16 for peers.