UBS has released a research report indicating that ALI HEALTH (00241) fell short of revenue expectations for the 2026 fiscal year. Furthermore, due to increased investments in artificial intelligence and supply chain, its adjusted net profit guidance for the 2027 fiscal year is below market expectations. The bank believes the company's profit visibility has declined, maintaining a "Sell" rating. In response to slowing revenue growth and margin pressure, UBS has lowered its profit forecasts for the group for the 2027 to 2029 fiscal years by 12% to 14%, and reduced the target price from HK$4.1 to HK$3.6. The report notes that ALI HEALTH's management has upgraded its business strategy, focusing on innovative drugs by integrating B2C and O2O operations and developing medical AI. UBS believes that while a drug-focused strategy may provide a downside cushion for revenue growth, the increasing proportion of revenue from first-party products and first-party drug sales, coupled with ongoing investments, will suppress profit margins. Additionally, heightened investments and competition from key rival JD Health (06618) may further increase profit uncertainty.