UBS: Lowering Alibaba Health's (00241) target price to HK$2.8 to maintain “sell and sell” rating

The Zhitong Finance App learned that UBS published a report lowering the target price of Ali Health (00241) from HK$3.1 to HK$2.8 to maintain the “sale” rating; the new target price is based on 17 times adjusted profit per share for the 2028 fiscal year, which was 19 times lower than the average of the Internet healthcare industry, reflecting the company's weak profit growth prospects.

The bank now predicts that the company's revenue for the 2027 fiscal year will increase by 7-10%, lower than the 10-15% forecast, which mainly reflects the challenges faced by the industry, slowing the growth of the health products and medical device business, and the company's reduction in price discounts. The bank also lowered its earnings per share forecast, which was slightly lower than the average forecast. Among them, earnings estimates per share for the 2027 fiscal year and 2028 were RMB 0.13 and RMB 0.15, respectively, while the peers were RMB 0.14 and RMB 0.16.