Goldman Sachs released a research report stating that the current negative adjustment period for the online health industry in mainland China has ended. Considering that the industry is still in a structural growth stage, the predicted average annual compound growth rate from 2023 to 2026 is expected to reach 16%. Therefore, they have resumed coverage of Ali Health (00241.HK) and given a "buy" rating with a target price of 4.4 yuan. They also maintain a "neutral" rating for JD Health (06618.HK) with a target price of 30 yuan.

The research report points out that although the market competition is fierce, Ali Health and JD Health still have certain competitive advantages to maintain their industry position. In addition to the efficiency and scale advantages of the supply chain, the authenticity of the products and the support from the parent company also help. Among them, Ali Health looks bullish, as its profit margin has higher visibility in the next two years, coupled with a higher matching degree of traffic with Ali (09988.HK). It is expected that its earnings per share growth rate will outpace JD Health.