UOB Kay Hian has released a research report stating that ALI HEALTH has reaffirmed its revenue growth target for fiscal year 2026 at 10% to 15% annually. However, the company has revised its adjusted net profit growth target down from 20%-30% to 10%-20%, citing increased investments in innovative drugs and artificial intelligence. The brokerage has consequently lowered its forecast for the group's adjusted net profit growth in FY2026 from 25% to 15%. Despite this adjustment, UOB Kay Hian maintains its projections for a compound annual growth rate of 13% for revenue and 24% for adjusted net profit from fiscal 2026 to 2028. This sustained growth is anticipated to be driven by strong momentum in innovative drugs, deeper synergies with Alibaba, and the expanding application of AI technologies. The firm has reiterated its "Buy" rating on the stock but reduced the target price from HK$7.8 to HK$6.
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