Gelonghui, June 3 | CICC released a research report stating that Alibaba Health's 2024 fiscal year (the year ending the end of March this year) performance exceeded expectations, and the narrowing of contract fees helped endogenous operating profits. The bank raised its earnings forecast for FY2025 by 76.3% to $1.38 billion, and first introduced a profit forecast of $1.62 billion for the fiscal year 2026, maintaining a target price of HK$4.2 and a “outperforming industry” rating. According to the report, the adjustment of Alibaba Health's epidemic prevention and control measures during the 2023 fiscal year caused a high base. The bank estimates that the company's revenue increased by 12.7% year-on-year and fell 7.8% year-on-year respectively in the first half of fiscal year 2024. It believes that the company's revenue is under pressure in the context of a high base. At the same time, it is expected that the 2025 fiscal year may usher in improvements. The bank also mentioned that the company completed the acquisition of digital marketing business related to the healthcare category under Ali Mama in January of this year. It is expected that the company will acquire advertising fees and may be expected to collaborate with the commission business under the e-commerce platform business segment to provide medical brands with a better supply of services to obtain more resources for brands, and is also expected to improve profit levels.