UOB Kay Hian has reiterated its target price of HK$7.8 and a "Buy" rating for ALI HEALTH (00241), following the company's better-than-expected financial results for the first half of fiscal year 2026. ALI HEALTH reported a 17% year-on-year increase in revenue and a 38.7% rise in adjusted net profit, surpassing both the bank's and market consensus estimates. The company reaffirmed its fiscal year 2026 (ending September 30) targets of 10-15% revenue growth and 20-30% adjusted net profit growth.
The bank projects that ALI HEALTH will achieve a compound annual growth rate (CAGR) of 13% in revenue and 24% in adjusted net profit from fiscal 2026 to 2028. This growth is expected to be driven by sustained momentum in innovative drugs/healthcare products, deeper synergies with Alibaba's ecosystem, and expanding AI applications.
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