Glonghui December 6 | Bank of America Securities published a report stating that it recently held an investor meeting with Alibaba Health's management. The company's acquisition of medical marketing business from Alibaba, a major shareholder, helps the company provide a one-stop solution to better respond to the needs of health care merchants and enhance the promotion efficiency of merchants. In fiscal year 2023, the target business had a profit of 1.2 billion yuan before tax. Management indicated that it would reinvest most of the profits to seek greater market share in the next few years while ensuring desired growth in overall profit. According to the report, Alibaba Health's profit for the first half of 2024 exceeded market expectations, maintaining the forecast of a 13% year-on-year increase in revenue for the second half of the year. The increase was the same as the first half of the year, and the net profit forecast for the second half of the year was slightly raised to 520 million yuan, an increase of 40% year-on-year, mainly due to the increase in the supply of non-pharmaceutical products with high profit margins, maintaining its “buy” rating, reflecting the increase in customer purchase frequency and health care expenses, supporting the increase in online penetration. The target price was lowered from HK$7 to HK$6.4, reflecting the depreciation factor of RMB.