According to the Zhixin Finance and Economics App, Ali Health (00241) rose more than 4%, and as of press time, it rose 4.13% to HKD 3.53 with a turnover of HKD 90.3826 million.

In terms of news, Ali Health's revenue for the year ended March 2024 was CNY 27.027 billion; net income was CNY 883 million, up 64.6% YoY; after adjusting profits, net profit was approximately CNY 1.438 billion, up 90.8% YoY. Haitong International believes that the company's profit exceeded market expectations, and the profit margin for fiscal year 2025 is expected to further increase. Driven by factors such as increased penetration of online and offline services in the Internet industry, prescription outflow, and gradual improvement of online medical insurance policies, the company's business scale effect is expected to continue to expand.

According to a research report from Goldman Sachs, the expected negative adjustment cycle of the mainland's online health industry has ended. Considering that the industry is still in a structurally growing stage, the average annual compound growth rate is expected to reach 16% from 2023 to 2026. Therefore, the coverage of Ali Health has been resumed, giving a buy rating and a target price of HKD 4.4. The bank is bullish on Ali Health, believing that its profitability will have higher visibility in the next two years and is better matched with Alibaba.