HK Stock Market Move | ALI HEALTH (00241) drops over 3%, company faces multiple factors, institutions point to weak profit growth prospects.

ALI HEALTH (00241) dropped over 3%, down 3.07% as of press time, at HK$2.84, with a turnover of HK$291 million. UBS released a research report stating that it has lowered its target price for ALI HEALTH 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, previously 19x, slightly below the average of internet healthcare peers, to reflect the company's weaker profit growth prospects. The bank said it now forecasts the company's FY2027 revenue growth at 7-10%, lower than the 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. CICC pointed out that during 1H27FY, the bank observed tightening regulation of overseas health supplements, with industry product sales generally under pressure, and judged that the company's health supplement category was also negatively affected. However, considering the continued increase in the overall online penetration of original research drugs and innovative drugs, and the company's continuous expansion of cooperation in the innovative drug field, CICC expects the company's pharmaceutical category may continue strong growth in the first half of the fiscal year.