ALI HEALTH (00241) fell more than 4% in Hong Kong trading. At the time of writing, the stock was down 4.08% to HK$4.70, with a turnover of HK$444 million. The movement follows a report from Goldman Sachs, which lowered its target price for ALI HEALTH from HK$5.20 to HK$4.80 while maintaining a "Neutral" rating. The adjustment reflects concerns that increased investments in artificial intelligence (AI) and pharmaceutical categories will impact the company's profitability. The report noted that ALI HEALTH's share price has declined only 3% year-to-date, outperforming the Hang Seng Tech Index's 11% drop, buoyed by growth expectations and the potential of AI in healthcare. However, the bank anticipates a slight profit contraction in the second half of the year, reversing the profit expansion seen in the first half. This is primarily attributed to higher spending on AI initiatives and increased discounts on proprietary drugs offered in response to competitive pressures. Investments in AI are expected to continue through the 2027 fiscal year.