ALI HEALTH (00241) fell more than 3% again, touching HK$4.08 to reach its lowest level since April of last year. As of writing, the stock was down 3.54% at HK$4.09, with a turnover of HK$499 million.

The decline follows the recent release of ALI HEALTH's full-year results for the period ending March 31, 2026. The company reported total revenue of approximately RMB 34.255 billion, a year-on-year increase of 12.0%. Net profit was about RMB 1.9363 billion, up 35.2% year-on-year, while adjusted net profit reached RMB 2.3262 billion, a 19.3% increase.

However, UBS noted that ALI HEALTH's revenue for the 2026 fiscal year fell short of expectations. Furthermore, due to increased investment in artificial intelligence and supply chain, the company's adjusted net profit guidance for the 2027 fiscal year is below market expectations. UBS stated that the company's earnings visibility has decreased, maintaining a "Sell" rating and lowering its target price from HK$4.1 to HK$3.6.

CLSA also commented, stating that innovative drugs remain a strategic growth driver for ALI HEALTH, but profits may decline due to ongoing investments in innovative drugs and medical AI. The company's investment in medical AI is planned over a three-year period. To reflect these investments, CLSA lowered its adjusted net profit forecasts for ALI HEALTH for the 2027 and 2028 fiscal years by 23%, consequently reducing its target price from HK$5.3 to HK$4.7.

Additionally, Citigroup lowered its target price for ALI HEALTH from HK$9 to HK$8, while maintaining a "Buy/High Risk" rating. Citigroup expressed continued long-term optimism towards the company, viewing it as a preferred stock.