Goldman Sachs: Lowering Alibaba Health's (00241) target price to HK$3.6 to maintain a “neutral” rating

The Zhitong Finance App learned that Goldman Sachs released a research report stating that the target price for Ali Health (00241) was lowered from HK$4.2 to HK$3.6, maintaining a “neutral” rating. Due to stricter regulations on nutritional products overseas and the impact of the high base of state subsidies for medical devices, Alibaba Health's sales growth in non-pharmaceutical categories weakened. The bank currently anticipates that, supported by structural factors such as increased online penetration and outflow of prescriptions from hospitals, pharmaceuticals can still record high double-digit year-on-year increases, and the revenue and net profit forecasts for the 2027 fiscal year will be lowered by 4% and 6%, respectively.

The bank pointed out that Alibaba Health will use the saved sales and marketing expenses to invest in the supply chain and compliance capacity, which will help accelerate B2C and O2O integration and continue to develop into an omnichannel pharmaceutical retail platform. The bank currently anticipates a 9% year-on-year increase in revenue for the 2027 fiscal year, and will reduce the adjusted net profit forecast for the 2027-2029 fiscal year by 6%, 3% and 4%, respectively.