CICC: Cuts Alibaba Health (00241) target price by 30.8% to HK$4.5, maintains "Outperform" rating.

Zhitong Finance APP has learned that CICC issued a research report stating that, taking into account the volatile performance of the health products category and the pace of the company's medical AI investment, it has lowered Alibaba Health's (00241) non-GAAP net profit forecasts for FY2027 and FY2028 by 6.6%/5.8% to RMB 2.178 billion and RMB 2.421 billion. Considering recent valuation fluctuations in the Hong Kong internet healthcare sector and that during 2Q FY2027 policy regulation of the health products industry also exerted some sentiment pressure, the bank, based on SOTP, lowered the company's target price by 30.8% to HKD 4.5, implying 54% upside from the current share price, and maintained an "Outperform" rating. The bank expects the company's 1H FY2027 revenue to achieve high single-digit year-on-year growth, while non-GAAP net profit may be broadly flat.