ALI HEALTH Falls 3% Below HKD4 to Over 1-Year Low; G Sachs Cuts TP to HKD4.2

ALI HEALTH (00241.HK) -0.120 (-2.927%) Short selling $331.78M; Ratio 44.422% opened 0.98% lower today (19th) and hit a trough of HKD3.96, marking an over one-year low. It is now trading at HKD3.97, down 3.17%, with 78.7555 million shares traded, involving HKD314 million.G Sachs issued a research report stating that ALI HEALTH's results for 2H FY2026 ended March were mixed. The broker maintained its Neutral rating, noting that revenue growth was mainly driven by pharmaceuticals (particularly prescription drugs and innovative products). However, intense competition is expected to result in slower growth than JD HEALTH (06618.HK) -1.560 (-3.621%) Short selling $157.76M; Ratio 25.847% . The broker forecast ALI HEALTH's revenue for FY2027 ending March to grow 13% YoY, compared with an estimated 18% revenue growth for JD HEALTH in 2026.The broker pointed out that ALI HEALTH faces margin pressure due to revenue mix-driven gross margin volatility and continued incremental investments in medical artificial intelligence and the pharmaceutical ecosystem (such as warehousing, cold-chain delivery and upstream marketing). In addition, emerging opportunities including medical AI applications (Hydrogen Ion) and innovative solutions for enterprises based on pharmaceutical digital tracking data remain at an early stage, and their financial contributions have yet to be validated.Given weaker-than-expected growth in its third-party platform business, gross margin volatility stemming from revenue mix, and incremental investments in AI and innovative drugs, G Sachs lowered its revenue forecasts for FY2027 to FY2028 by 2% and cut its adjusted net profit forecasts for the same period by 18%, while introducing FY2029 projections. The broker reduced its 12-month TP from HKD4.8 to HKD4.2, based on 28x forecast average P/E for FY2027 to FY2028. (ad/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-18 16:25.)