The Zhitong Finance app learned that Citibank published a research report saying that to maintain Ali Health (00241)'s “buy/high risk” rating, the target price was lowered from HK$9.5 to HK$8.

According to the report, the company's growth in the first half of fiscal year 2024 was hampered by e-commerce platforms, and management revealed that about half of the net profit will be spent to enhance the operating capacity of the newly acquired marketing business. Management aims to increase net profit by 20% to 30% year over year over the next two to three years.

The bank said that considering the potential impact of the integration of the new advertising business on the revenue structure, and the company's expectation that it will take another three to six months to integrate the advertising business, the revenue forecast for the 2024-26 fiscal year was lowered by 6%/13%/22% to reflect strategic changes in the direct sales business, and the net profit forecast was lowered by 2%/7%/15% due to increased expenditure expectations.