Daiwa published a research report, quoting Alibaba Health Information Technology (00241.HK) management as saying that in the current regulatory environment, user growth will inevitably slow down, and it is expected that the company's future development will focus on exploring the long-term value of customers. Management has also indicated that it will focus on user segmentation and tiering to enhance customer value.

The company expects revenue to grow at a compound annual growth rate of more than 30% from the second half of 2022 to fiscal year 2025, with direct sales growing faster than third-party businesses. Alibaba Health Information Technology also expects the net loss to continue to narrow, with the goal of breaking even by fiscal year 2024.

In view of recent regulatory measures that hindered Alibaba Health Information Technology's development into an one-stop online medical platform, the bank lowered its target price from 27 yuan to 15 yuan, maintaining its "buy" rating, the bank said.