Ali Health's stock plummeted 5.08% during intraday trading on Thursday, extending a period of significant selling pressure.
The sharp decline follows the company's disappointing FY26 financial results, which showed second-half revenue growth of only 7.6%, significantly below market expectations of 13.8%. This earnings miss triggered multiple downgrades from major financial institutions, including UBS, Goldman Sachs, CLSA, and Bank of America, which cut their target prices and profit forecasts for the company.
Further compounding investor concerns are newly issued prescription drug online retail guidelines. These regulations prohibit AI-based prescription review substitution and restrict promotional activities for prescription drugs, which analysts expect will raise platform compliance costs and weigh on the near-term profitability of pharmaceutical e-commerce players like Ali Health.
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