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<Research>UBS Cuts ALI HEALTH (00241.HK) TP to HKD3.6 as Higher Investment Reduces Earnings Visibility
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ALI HEALTH (00241.HK)'s FY26 revenue fell short of expectations, and owing to heightened investment in AI and supply chain, its guidance for adjusted net profit in FY27 was below market forecasts, UBS pointed out in a research report. The broker said the company's earnings visibility declined and thus maintained a Sell rating. In response to revenue growth deceleration and margin pressure, UBS lowered its earnings forecasts for FY2027-29 by 12-14%, and cut the TP from HKD4.1 to HKD3.6. The report stated that ALI HEALTH's management upgraded its business strategy, focusing on innovative drugs through integration of B2C and O2O operations, apart from the development of medical AI. In addition, increased investment and competition from key rival JD HEALTH (06618.HK) may further heighten earnings uncertainty of ALI HEALTH. Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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