Gelonghui, November 29 | According to a report published by Morgan Stanley, in the first half of the 2024 fiscal year, Alibaba Health's revenue rose 12.7% year-on-year to 12.96 billion yuan, in line with the company's expectations, and a 14% increase compared to JD Health during the same period. The direct sales business continued to lead growth with a year-on-year increase of 13.5%; e-commerce platform revenue grew modestly by 2.1%; and revenue from healthcare and digital services increased by 16.4%. Benefiting from the expansion of gross margin and cost savings, the adjusted net profit was 643 million yuan, which was better than the company's expectations. The adjusted net profit margin increased 2.3 percentage points to 5% year-on-year. According to the bank, the company's profit margin for the first half of the year was better than expected, and it used HK$13.5 billion to acquire Ali Mama's exclusive marketing review rights for the healthcare category. The asset injection of the long-awaited parent company in the market has finally been implemented, which will help continue to increase platform revenue. It believes that the stock price response has been positive, with a target price of HK$5 and maintaining the “reduced holdings” rating.