JPMorgan Chase & Co published a research report that Alibaba Health Information Technology (0241.HK)'s performance in the first half of fiscal year 2022 was weak. The bank is worried that tighter regulation of the Internet healthcare industry has hurt the potential upside of the company's online medical services and slowed the growth of online prescription drug sales. In addition, BABA's growth prospects are weak in the coming quarters. Alibaba Health Information Technology is expected to suffer from the lack of resources to support its ecommerce platform sales growth.

The bank maintains its forecast for Alibaba Health Information Technology to achieve a compound annual growth rate of more than 30 per cent in fiscal year 2022-2024, but is not expected to record net profit until fiscal year 2024, a year later than previously forecast, as the company's growth comes mainly from sales of prescription drugs with lower profit margins. It also believes that the company's growth prospects are bleak, coupled with the lack of recent catalyst for the stock price, reiterated its "neutral" rating, and lowered its target price from HK $9 to HK $8.