Lates News

Bank of America issued a report maintaining a "buy" rating on Ali Health, raising the target price 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 the rise in Ali Health's stock price include online channels for social medical insurance payments and benefiting from the growth of traffic on Taobao and the expansion of shopping scenarios. The bank pointed out that Ali Health's revenue for fiscal year 2025 increased by 13% year-on-year, slightly exceeding expectations, mainly driven by the accelerated growth of direct sales business 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 growth of 5% to 10% in the current fiscal year, compared to market expectations of 10%; non-GAAP net profit is expected to increase by 10% to 20% year-on-year, compared to market expectations of 25%.