ALI HEALTH (00241) experienced a significant surge of 10.32% during Tuesday's trading session, as investor sentiment turned bullish on the back of positive analyst reports and favorable industry trends. The stock's impressive performance outpaced the already strong showing of internet healthcare stocks in Hong Kong.
HSBC Global Research has raised its revenue growth forecast for ALI HEALTH's fiscal year 2026 from 9% to 15% year-over-year, citing the company's robust platform ecosystem and strong demand for innovative drugs. The research firm expects ALI HEALTH to benefit from the shift of offline traffic to online platforms and tightening social insurance claims. Additionally, HSBC anticipates improved profit margins due to a revenue structure shift towards non-pharmaceutical products and enhanced first-party sales profitability.
The stock's rally also comes amid a broader uptrend in the internet healthcare sector, supported by policy optimizations and potential benefits from new regulations on online prescription drug retail. The National Medical Products Administration's recent draft of "Compliance Guidelines for Online Prescription Drug Retail" aims to enhance supervision and regulate online prescription drug retail activities, which could potentially benefit established players like ALI HEALTH. Industry analysts suggest that the healthcare sector as a whole may see improvements in revenue, profit, and cash flow, making it an attractive investment opportunity.