Bank of America: Raised Ali Health's target price to HK$5.5, platform business momentum improves and profitability expands.

Bank of America released a report, maintaining a "buy" rating on Ali Health, with the target price raised from 5.2 Hong Kong dollars to 5.5 Hong Kong dollars, believing that the company's platform business momentum is improving and profitability is expanding. The bank believes that the catalysts for Ali Health's stock price to rise include social medical insurance payments through online channels, as well as the benefits of Taobao's traffic growth and shopping scene expansion. The bank pointed out that Ali Health's revenue for the fiscal year 2025 is expected to increase by 13% year-on-year, slightly exceeding expectations, mainly driven by the acceleration of direct sales business growth in the second half of the fiscal year. Non-GAAP net profit met market expectations but was lower than the bank's expectations, due to higher sales and marketing expenses. The company's management expects revenue to grow by 5% to 10% in the current fiscal year, compared to market expectations of 10% growth; non-GAAP net profit is expected to increase by 10% to 20% year-on-year, compared to market expectations of 25% growth.