UBS: Raised the target price for ALI HEALTH from HKD 3.3 to HKD 3.75

UBS's report pointed out that ALI HEALTH's management reiterated its revenue growth target of 10% or more for the fiscal year 2025, and expects adjusted net profit for the fiscal year 2026 to be between 2.3 billion and 2.5 billion yuan. UBS believes that ALI HEALTH's renewed focus on pharmaceuticals reflects its strategy to pursue market share, but whether it can maintain the current gross profit level will be key. The firm raised ALI HEALTH's target price from HKD 3.3 to HKD 3.75, with a rating of "Neutral." UBS expects ALI HEALTH's revenue growth for the fiscal years 2025 to 2027 to be 10.5%, 9.1%, and 10.2%, respectively, and has lowered its earnings per share forecasts for 2026 and 2027 to RMB 0.15 and RMB 0.17